Arab News, Thursday, Jan 20, 2022 | Jamada Al-Aakhirah 17, 1443
Residential land prices drive Saudi real estate inflation to almost 2-year high
Saudi Arabia: A hike in residential
land prices prompted real estate prices in Saudi Arabia to rise by an annual
rate of 0.9 percent in the final quarter of 2021, according to data by Gastat.
This is the highest level since the first quarter
of 2020 as prices of residential land plots went up, causing the sub-index of
residential real estate prices to go up by 1.7 percent.
Other components of this sub-index – which
includes costs of buildings, villa, apartments and houses – all underwent
negative inflation.
Meanwhile, commercial and agricultural real estate
prices fell from a year ago by 0.7 percent and 0.2 percent, respectively,
balancing the effect on the overall index.
In quarterly terms, real estate prices in the
Kingdom ticked up by 0.5 percent induced by, again, the household real estate
sub-index which grew by 0.7 percent.