In a move aimed at shedding light on the reality of the real estate market in the Kingdom, General Authority for Statistics revealed new findings regarding the movements of real estate prices in administrative regions during 2024.
The General Authority for Statistics (GASTAT) announced new findings regarding the movements of real estate prices in administrative regions during 2024. <The Statistics Authority announced the movements of real estate prices in the Kingdom's administrative regions, where real estate prices recorded an annual increase of 3.6%, mainly due to the notable rise in the Riyadh region which recorded an increase of 10.2%. The Riyadh region's share in the price index reached 47.8%, reflecting its significant weight in the movement of the real estate market. In contrast, the Makkah region recorded a slight decrease of 0.6%, with a weight of 24.1% in the index, while the Eastern Province saw a significant decrease of 4.6%, with a weight of 16.1% in the index.
On the other hand, the Eastern Province saw a significant decrease of 4.6%, with a weight of 16.1% in the index. <Looking at some of the other regions, the authority reported that Najran region recorded an increase in prices by 4.6%, followed by Tabuk region which saw an increase of 1.1%. On the contrary, Al Baha region witnessed a sharp price drop of 16.7%, as well as Asir region recorded a decline of 7.3%.
Also, Asir region recorded a decline of 7.3%. <Regarding the Kingdom's real estate sectors in 2024, the data showed that the overall index recorded an annual increase of 2.3%. The residential sector recorded a rise of 1%, with residential land prices increasing by 1.2%, while apartment prices recorded an increase of 0.9%. The commercial sector witnessed a notable increase of 6.1%, as commercial land prices increased by 6.2% and commercial building prices increased by 6%. On the other hand, the agricultural sector also recorded an increase in prices, with agricultural land prices rising by 1.4%. <GASTAT confirmed that it adopted a new methodology to calculate the real estate price index, in cooperation with the General Authority for Real Estate, the Ministry of Justice, and the Saudi Central Bank. This methodology aims to improve the quality and transparency of data related to real estate prices using geographic artificial intelligence techniques, which enhances the accuracy of real estate classification and the quality of available data, and reflects global best practices in this field.
<The Real Estate Price Index is an important statistical tool to measure the relative changes in real estate prices in the Kingdom. The index is based on data extracted from real estate transactions available through its various sources in the Kingdom. The General Authority for Statistics calculates the index quarterly, by sector and property type, for all administrative regions in the Kingdom.
