Riyadh October 28 2024: The Real Estate Price Index increased by 2.6% in Q3 of 2024 compared to the same quarter of 2023 due to significant hike in commercial sector prices.
The index influenced by a 1.6% increase in residential sector real estate prices and a 6.4% increase in commercial sector real estate prices.
On the other hand, agricultural sector prices decreased by 8.7%.
Riyadh region, experienced an annual increase of 10.2% while, the Makkah region and the Eastern Province saw declines of 1.3% and 8.3%, respectively.
Data indicates that real estate prices in the residential sector experienced varying increases in the third quarter of 2024 compared to the same quarter of the previous year. The residential sector recorded an overall increase of 1.6%, with a weighting of 72.6% in the index. This rise was largely driven by a 1.6% increase in the prices of residential land plots, which carry a weighting of 45.7% in the index. Additionally, apartment prices increased by 1.9%, while villa prices rose by 1.5%. However, the prices of residential floors saw a decrease of 1.8%. Similarly, real estate prices in the commercial sector increased by 6.4% in the third quarter of 2024 compared to the same quarter of the previous year. This growth was primarily driven by a 6.3% increase in the prices of commercial land plots. Moreover, building prices rose by 8.6%, while gallery/ shop prices declined by 1.1%.
The real estate price index increased by 0.8% on quarterly basis during the third quarter of 2024 compared to the previous quarter (second quarter of 2024). The quarterly real estate index was influenced by the increase in the prices of the residential sector by 0.2%, driven by the rise in residential land plot prices by 0.2%, as well as the increase in the prices of villas by 0.4%, and the prices of floors by 1.8%.
On the other hand, the prices of real estate in the commercial sector increased by 3.0%, driven by a 3.2% rise in commercial land plot prices, a 0.4% increase in building prices, and a 2.4% increase in gallery/shop prices Meanwhile, the prices of real estate in the agricultural sector decreased by 7.7%, driven by a 7.7% decline in agricultural land prices.
In terms of the impact of administrative regions on the annual change, the national level saw an increase of 2.6%. This growth was primarily driven by the Riyadh region, which experienced an annual increase of 10.2%. In contrast, the Makkah region and the Eastern Province saw declines of 1.3% and 8.3%, respectively. The weights of these regions in the overall index are 47.8%, 24.1%, and 16.1%, respectively (Graph 3). At the level of other regions in the Kingdom, Hail region and the Northern region recorded notable annual increases of 5.0% and 1.7%, respectively, following Riyadh. Meanwhile, Al-Baha region and Asir region experienced significant declines, with decreases of 14.3% and 9.3%, respectively.