The real estate price index in Saudi Arabia saw an increase of 4.3 percent during the first quarter of 2025, compared to the same quarter in 2024. According to GASTAT, This growth is largely attributed to a 5.1 percent rise in residential sector prices and a 2.5 percent increase in commercial sector prices, while agricultural sector prices witnessed a decline of 1.1 percent.
Uneven growth in the housing sector
Data from the General Authority for Statistics revealed on Tuesday that the housing sector saw varied growth year-on-year when compared to the first quarter of 2024. This growth was propelled by a notable 10.3 percent rise in villa prices, a 1.2 percent increase in apartment prices, and a 5.3 percent rise in residential land prices. Additionally, residential floor prices rose by 2.8 percent.
Commercial sector price trends
In the commercial sector, prices for commercial land experienced a rise of 2.4 percent, while building prices increased by 3.1 percent. Exhibition prices also saw a notable increase of 5.1 percent, the General Authority for Statistics highlighted.
Quarterly changes
Saudi Arabia’s real estate price index rose by 0.7 percent on a quarterly basis during the first quarter of 2025 when compared to the previous quarter (the fourth quarter of 2024). The quarterly real estate index was influenced by a 1.9 percent increase in residential sector prices, with residential land prices rising by 3.2 percent, apartment prices by 0.2 percent, and floor prices by 0.2 percent, while villa prices saw a decline of 1.4 percent.
Declines in the commercial sector
Conversely, commercial sector prices experienced a decline of 2.1 percent, primarily due to a 2.6 percent drop in commercial land prices. However, building prices increased by 1.6 percent and showroom prices rose by 1.8 percent. Agricultural real estate prices also faced a decline of 3.8 percent, resulting from a 3.8 percent decrease in agricultural land prices.
Regional impact on the Real Estate Price Index
Regarding the influence of administrative regions on the annual change in the real estate price index, which stood at 4.3 percent at the Kingdom level, this increase was driven by a significant 10.7 percent price increase in the Riyadh region, followed by a 1.5 percent increase in the Makkah region. In stark contrast, the Eastern Province experienced a 5.5 percent decline.
Notable increases and declines in other regions
In the Kingdom’s other regions, the annual increase in the real estate price index for the Northern Borders, AlJouf, and Najran regions recorded the highest rates after the Riyadh region, with indexes of 8.7 percent, 8.2 percent, and 5.6 percent respectively. Meanwhile, the Eastern Province and Aseer regions saw the most significant declines, registering decreases of 5.5 percent and 4.4 percent, respectively.
