Housing raises real estate prices in Saudi Arabia by 0.8%

The Saudi General Authority for Statistics reported that real estate prices rose by 0.8 percent in the second quarter of 2023 compared to the same quarter last year.

  The authority said in its monthly report that this increase was due to an increase in residential real estate prices by 1.1 percent, and commercial real estate prices by 0.2 percent. The decline in the agricultural sector contributed to reducing the rise in the index.

Real estate prices in the residential sector

The authority indicated that the rise in residential land prices is the biggest influence on the rise in real estate prices in the second quarter.

She said that real estate prices in the residential sector rose by 1.1 percent, affected by the rise in the prices of residential land plots by 1.2 percent on an annual basis in the second quarter, adding that “given the heavy weight of residential sector prices in the general index, it had a significant impact on the rise in the index.” "General".

Apartment prices have increased

Among other residential real estate prices, apartment prices rose by 1 percent. In contrast, condominium prices decreased by 0.9 percent, villas by 5 percent, and house prices by 0.1 percent.

On the other hand, real estate prices in the commercial sector increased by 0.2 percent, affected by the increase in the prices of commercial land plots by 0.2 percent, while the prices of commercial showrooms decreased by 1.1 percent. Prices of commercial buildings and centers stabilized in the second quarter.

On a quarterly basis, the general real estate price index stabilized during the second quarter.

Land registry

On the other hand, the General Real Estate Authority in Saudi Arabia announced seven areas benefiting from the real estate registry in Riyadh, Dammam and Medina. This phase includes 368,565 real estate plots in 48 neighborhoods with a total area of 910.27 square kilometers in the three cities, starting on December 24. 2023, and registration continues until the end of March 28, 2024.

The authority confirmed that the selection of neighborhoods was in accordance with approved standards, and the remaining areas and neighborhoods that will benefit from the real estate registry will be announced successively, according to readiness.

Property registration instrument

It is noteworthy that the National Company for Real Estate Registration Services “Real Estate Registry” undertakes the work of establishing and managing the real estate registry in the Kingdom using technologies and geospatial data through an integrated digital platform that contributes to enhancing transparency and confidence in real estate services and data.

In addition to using modern technologies, the accredited registrars will carry out their field work within the areas benefiting from the registry, starting from the date set for the start of registration, where a “property number” and ownership registration instrument will be issued for each real estate unit.

The new ownership registration instrument will include data on the property, its descriptions, condition, rights and obligations, and all real estate transactions that occur on it, linked to geospatial information through surveying and geographical coordinates of the properties, to be the basis for registering ownership and the real estate rights resulting from it, in a way that contributes to the sustainability and strengthening of the real estate sector and its main capabilities.