S. Arabia’s RPI up by 2.6% in Q3 ’24

Saudi Arabia’s Real Estate Price Index (RPI) rose by 2.6 per cent in Q3 2024 compared to the same quarter last year. This growth stems from a 1.6 per cent increase in residential prices and a significant 6.4 per cent rise in commercial real estate prices, while agricultural sector prices fell by 8.7 per cent.

The residential sector, which holds a 72.6 per cent weight in the index, recorded an overall price increase of 1.6 per cent, driven by a 1.6 per cent rise in residential land plot prices (45.7 per cent weight). Apartment prices increased by 1.9 per cent, and villa prices rose by 1.5 per cent, though residential floor prices declined by 1.8 per cent.

In the commercial sector, prices climbed by 6.4 per cent, primarily due to a 6.3 per cent increase in commercial land plot prices and an 8.6 per cent rise in building prices, while gallery/shop prices decreased by 1.1 per cent.

On a quarterly basis, the RPI increased by 0.8 per cent in Q3 2024, with residential prices rising by 0.2 per cent and commercial prices by 3.0 per cent. Agricultural real estate prices dropped by 7.7 per cent.

Regionally, the Riyadh area led the growth with a notable annual increase of 10.2 per cent, while the Makkah region and Eastern Province saw declines of 1.3 per cent and 8.3 per cent, respectively. Other areas, such as Hail region and Northern region, recorded increases of 5.0 per cent and 1.7 per cent, while Al-Baha and Asir faced significant declines of 14.3 per cent and 9.3 per cent.

Overall, Q3 2024 reveals a mixed yet generally upward trend in Saudi Arabia’s real estate market, marked by strong performances in residential and commercial sectors against challenges in agriculture.

Attribution: REAL ESTATE PRICE INDEX, Q3 2024

Subediting: M. S. Salama