Saudi real estate prices soar by 1% in Q1 2023: GASTAT

RIYADH: According to the latest report released by the General Authority for Statistics, real estate prices in Saudi Arabia have increased by 1 per cent in the first quarter of 2023, compared to the same period in the previous year.

The rise in real estate prices was driven by the increase in the prices of residential properties by 1.6 per cent and commercial real estate by 0.1 per cent.

“Given the heavy weight of the residential sector prices, it had a significant impact on the increase in this general index,” read the report.

However, the decline in the agricultural sector contributed to reducing the rate of increase in the real estate index by 0.4 per cent.

In terms of property types, the report indicates that apartment prices increased by 2.1 per cent year-on-year in the first quarter, while the prices of residential buildings and villas decreased by 0.9 per cent and 0.3 per cent respectively. 

House prices were stable and did not record any relative change in the first quarter.

Furthermore, real estate prices in the commercial sector increased by 0.1 per cent, driven by the increase in the prices of commercial plots of land and commercial centres prices by 0.1 per cent.

The increase in real estate prices is a positive sign for the real estate sector in Saudi Arabia, which has been experiencing a slowdown in recent years. The rise in prices is expected to boost investment in the sector and promote economic growth in the country.