Saudi Arabia sees record increase in real estate prices

Saudi Arabia recorded the largest increase ever in real estate prices during the second quarter of this year, with residential land prices continuing to rise.

The real estate price index increased by 1.7%, the highest since data began being recorded in 2015, according to data from the Saudi General Authority for Statistics.

The index was influenced by a 2.8% rise in residential property prices due to an equivalent increase in the prices of residential land plots.

Among other properties, apartment prices rose by 2.9%, while prices for residential buildings fell by 0.1%, villas by 0.5%, and houses by 1.4%.

Saudi Arabia is betting on the real estate sector as a key contributor to economic transformation and the support of non-oil GDP.

According to Standard & Poor's, the sector's contribution to the country's economy is expected to rise to 10% by 2030.

The value of the real estate market in Saudi Arabia is projected to reach $2.1 trillion this year, making it the highest among Arab countries, according to Statista data.