Skip to content Skip to Search
Skip navigation

Residential price rise counters slip in Saudi commercial property

The Saudi government is trying to raise home ownership among nationals to 70 percent of the population by 2030, which is helping to drive up residential property prices Alamy via Reuters
The Saudi government is trying to raise home ownership among nationals to 70 percent of the population by 2030
  • Residential prices up 1.2%
  • Overall property index up 0.6%
  • Commercial sector down 0.5%

Residential property was the driving force behind a rise in Saudi Arabian real estate prices in the first quarter of 2024 as prices of commercial real estate fell, government statistics released this week showed. 

The overall real estate price index rose by 0.6 percent compared with the same quarter in 2023.

But while there was a 1.2 percent increase in residential prices, the commercial sector fell 0.5 percent and agricultural land prices dropped 0.1 percent. 

Residential prices have been consistently higher over the past year, peaking with a rise of 1.57 percent in the first quarter of 2023, figures from the General Authority for Statistics show. 

The index rise broadly reflects consumer price inflation which fell to 1.6 percent in March.

Residential prices have been underpinned by rising land prices as the kingdom pursues the giga-projects at the heart of its economic transformation programme. One real estate consultancy called the country the world’s "biggest ever construction site". 

The government is trying to raise home ownership among nationals to 70 percent of the population by 2030 and attract affluent foreigners

The Saudi economy contracted by 0.8 percent in 2023 following oil output cuts in an attempt to push up oil prices but the International Monetary Fund has praised robust growth in the non-oil sector, which hit 50 percent of GDP for the first time.

The statistics authority said commercial real estate had been hit by a fall in the price of commercial land and exhibitions over the past two quarters, probably as a result of the economic slowdown.

Latest articles

Tourism to contribute $64bn to UAE’s economy in 2024

The tourism sector’s contribution to the UAE’s economy is expected to reach AED236 billion ($64 billion) in 2024, accounting for 12 percent of the overall GDP, a senior government official has said.  The sector contributed AED220 billion to the GDP last year, accounting for almost 12 percent of the overall economy, Khaled Al Midfa, chairman of Sharjah […]

Helmet, Adult, Male

Saudi Aramco’s $10bn share sale slated for next month

Saudi Aramco’s anticipated share sale is expected to take place next month, according to a media report. The offering is projected to raise nearly $10 billion and will be listed on the local stock exchange, Reuters reported, citing unnamed informed sources.  The sources said details may still change, but the process continues. In September 2023, […]

Indoors, Restaurant, Cafeteria

Hong Kong’s airport lounge operator targets Saudi expansion

Hong Kong’s airport lounge operator, Plaza Premium Group (PPG), has earmarked $100 million to expand across the Middle East, focusing on Saudi Arabia. The regional expansion is part of its three-year $300 million global expansion plan. The funds will be allocated to opening lounges, establishing an airport concierge service with white-glove service, opening innovative dining outlets and exploring […]

Russians Turkey Istanbul Bridge

Russians rush from Turkey as costs and restrictions bite

Rising costs, increased difficulties in obtaining residency permits and tighter enforcement of restrictions on the number of foreign nationals who can live in popular regions are prompting an exodus of Russian citizens from Turkey.  The number of Russian nationals holding Turkish residence permits has plunged to just over 96,000 as of May 16, down from […]