According to government data, the second quarter of 2024 saw a 1.7% increase in Saudi Arabia’s real estate price index over the same period the previous year, primarily due to rising expenses in the residential sector.
The General Authority for Statistics reports that in the second quarter, prices in the housing industry rose by 2.8 percent year over year, mostly as a result of a 2.8 percent increase in land plot costs.
Saudi Arabia’s economic diversification is contingent upon the growth of the residential sector as the country transitions into a hub for business and tourism.
One of the Middle East’s fastest-growing industries is real estate in the Kingdom. According to the Real Estate General Authority, its market volume is expected to expand at an estimated compound annual growth rate of 8%, reaching $69.51 billion in 2024 and $101.62 billion by 2029.
According to GASTAT, “it had a significant impact on the rise in the general index given the heavy weight of the residential sector in the general index.”
In the second quarter of the year, apartment prices rose by 2.9 percent year over year.
However, GASTAT reported that the prices of commercial real estate fell by 0.4 percent year over year in the second quarter due to a 0.4 percent decline in the cost of commercial land plots.
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