Saudi Arabia Real Estate Prices rose 3.2 percent in the second quarter, showing steady momentum in the property market. Moreover, the latest figures from the General Authority for Statistics confirm that strong commercial growth and stable residential demand are driving the market forward.
In the commercial sector, Saudi Arabia Real Estate Prices for commercial properties climbed 11.7 percent year on year. Commercial land plots rose 12.7 percent, while building prices gained 2.7 percent. Shop and gallery prices increased 4.1 percent. Analysts link these gains to government-led programs, including the regional headquarters initiative.
The upward trend in Saudi Arabia Real Estate Prices also supports Vision 2030’s target of strengthening the property sector. The Real Estate General Authority projects the market will reach $101.62 billion by 2029, growing at an average of 8 percent annually from 2024.
According to Knight Frank, Grade A office rents in Riyadh reached SR2,700 per sq. meter in Q1. This represented a 23 percent annual increase, fueled by business expansion and demand from international firms.
In the residential segment, prices showed slower growth. Residential land prices rose 0.2 percent, villas climbed 3.2 percent, and residential floors gained 1.5 percent. However, apartment prices fell 0.7 percent over the year, softening the residential component of Saudi Arabia Real Estate Prices.
Quarterly data revealed a 2.6 percent decline in the residential sector. Land prices fell 4 percent, apartment prices dropped 1.2 percent, and residential floors declined 0.9 percent. Villas, however, saw a 1.8 percent gain from the previous quarter.
Overall, the real estate price index in Saudi Arabia increased 0.1 percent quarter on quarter. Commercial property prices rose 7.9 percent, with commercial land plots gaining 8.6 percent and commercial buildings increasing 3 percent.
Agricultural property prices also supported Saudi Arabia Real Estate Prices, climbing 1.7 percent in the quarter, with agricultural land matching that rise. However, the annual rate of change slowed compared to Q1, due to weaker growth in the residential sector.
Regionally, the Eastern Province saw a 4.2 percent annual increase in Saudi Arabia Real Estate Prices. Makkah followed with 3.9 percent, and Riyadh recorded 3.6 percent. Tabuk rose 4.7 percent, Hail 2.9 percent, and Qassim 1.1 percent. Conversely, Asir, Madinah, and Jazan posted declines of 3.9 percent, 3.2 percent, and 2.8 percent, respectively.
In conclusion, the Saudi Arabia Real Estate Prices data confirms ongoing growth driven by commercial expansion, regional development, and Vision 2030 initiatives. The sector appears well-positioned for sustained momentum in the coming years.
