A recent report issued by Jadwa Investment for November revealed that real estate prices in the Kingdom remained stable at 0.5% during the third quarter of 2021, compared to the same quarter of 2020.

The report indicated that commercial real estate prices recorded a slight decline of 0.7% compared to last year (2020), while residential rental prices fell significantly by 3.6% compared to last year.

It noted that residential real estate prices fell by 0.3% during the third quarter of 2021 compared to the second quarter of the same year, and commercial real estate prices in the Kingdom also fell by 0.9% during the last quarter compared to the second quarter of 2021.

More specifically, real estate prices in the Makkah region stabilized at 0.2%, compared to 2020, supported by an increase in mortgage rates backed by government housing programs—marking the first annual increase since the second quarter of 2018.

The report noted that prices in the Cost of Living Index for September stabilized at 0.6%, compared to last year, and by 0.2% compared to August 2021, confirming that prices in the "Housing and Utilities" category continued to decline during September 2021.

The report also noted that prices in the Cost of Living Index stabilized in September by 0.6% compared to the previous year (2021), and by 0.2% compared to August, while prices in the "Food and Beverages" category rose slightly by 2.4% compared to September 2020.

The "Transportation" category also recorded a 5.9% increase year-over-year and about 0.2% compared to August, and prices in the “Education” category saw their first slight increase since August 2020, at 0.5% compared to last year.