Real estate price index rises 0.5%

Real estate price index rises 0.5%

Real estate price index rises 0.5%

The real estate price index in the Kingdom recorded an increase of 0.5 percent in the third quarter of 2020 compared to the same quarter of 2019, affected by a 2.1 percent increase in residential real estate prices. Agricultural property prices increased slightly by 0.3 percent, while commercial real estate prices decreased by 2.5 percent. Per cent, which limited the rise of the general index. The report indicated that the prices of residential land plots witnessed a rise of 2.1 percent on an annual basis in the third quarter of 2020, which contributed to the increase in residential real estate prices, which consequently led to an increase in the general index due to its significant weight in the index. The report pointed out that among other residential real estate, villa prices increased by (+ 0.8%) and apartment prices by 1.5%, while the prices of buildings decreased by 0.9% and residential houses by 3.1%, and agricultural real estate prices increased by 0.3% affected by the rise in prices. Agricultural land increased by 0.3 percent. The report indicated that the real estate price index decreased by 0.6 per cent in the third quarter of 2020 compared to the second quarter of 2020, mainly due to the decrease in average residential property prices by 0.5 per cent, especially residential plots, which decreased by 0.5 per cent. Among other residential real estate, villa prices decreased by 0.1%, apartment prices by 0.1%, house prices by 0.2%, while residential buildings prices increased by 0.1%. The average prices of commercial real estate also decreased by 0.7 per cent, especially the prices of commercial land plots by 0.7 per cent, while the prices of shops increased by 1.0 per cent, while the prices of buildings and commercial centers stabilized and did not record any significant change. Agricultural land prices also stabilized and did not change. It is noteworthy that the real estate price index is a statistical tool for measuring the relative change in real estate prices in Saudi Arabia and is based on a set of data for real estate transactions available in the Ministry of Justice as the only official reference and source of data on the real estate sector in the Kingdom and this data set is a result of the electronic registration and documentation processes that take place in the ministry It includes the various variables in real estate transactions such as value, location, sector, and type. Based on these variables, the General Authority for Statistics calculates the index (real estate price index) on a quarterly basis by sector and type of property for all administrative regions in the Kingdom and the base year for this indicator is 2014

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