CAIRO: Real estate prices in Saudi Arabia increased by 0.7% in the second quarter of 2022 compared to the corresponding period last year due to an increase in prices in the residential sector, the report revealed on Sunday. General Statistics Authority.
Annual residential property prices in the Kingdom rose 1.9% in the second quarter of this year, GASTAT reported.
This increase was fueled by a 2% rise in residential land prices, which weighed heavily on the general price index.
Residential land has a weight in the price index of 62.2, indicating a relatively large impact on the general price index.
The weight of commercial land in the house price index registered 30.9, while agricultural land reached 3.6.
“The dramatic growth in real estate prices in the Kingdom reflects what we are seeing around the world,” said Faisal Durrani, partner and head of Middle East research at Knight Frank.
“However, in Saudi Arabia, government programs aimed at boosting home ownership have boosted demand, development activity and housing prices,” Durrani continued.
The price indices for Saudi apartments, villas and houses fell by 1.1, 1.1 and 0.9% respectively. Still, the general building price index did not record any significant change this quarter compared to the same quarter in 2021.
Commercial properties, on the other hand, saw a 1.5% drop in the annual price index in the second quarter of 2022, the authority reported.
The decline resulted from a drop in commercial land prices of 1.5% and galleries of 1.1%, the compiled data reported.
Year-on-year, commercial hub price index levels edged up 0.1%, while its agricultural real estate prices fell 0.6% due to the 0.6% decline land prices.
Compared to the previous quarter, the country’s overall REPI rose 0.3% in the second quarter, driven by a 0.5% increase in residential property prices.
The price indices for apartments and villas increased by 3.1 and 1.2% respectively, while the housing price index fell only 0.1% compared to the first quarter of this year, indicates the report.
In addition, quarterly prices for commercial land and galleries fell by 0.2% and 1.4%, causing the commercial property price index to drop by 0.2% in the second quarter.
The farmland price index registered a slight drop of 0.1% this quarter.