Saudi Real Estate Price Index plunges by 6.83% in 2Q 2018

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Saudi Gazette

JEDDAH
— The General Authority for Statistics revealed yesterday the Real Estate Price Index data for the second quarter of the year 2018. The general index dropped by 6.83 percent in the second quarter of 2018 compared to 2.84 percent in the first quarter of 2018.

Real Estate Price Index for the second quarter of 2018 compared to the first quarter of 2018 declined by 0.7%, due to changes in the prices of the three components of the sector which are residential, commercial and agricultural units.

The residential items have dropped by 0.8 in the second quarter of the year 2018 compared to the first quarter of the same year. These include plots, villas, apartments buildings and houses. Figures show that residential lands dropped by 0.9%, villas dropped by 1.7%, apartments by 0.6%, houses by 0.1% and buildings by 0.2%. The decline in the residential lands was 0.4% while only 0.1% dropped was documented for agricultural lands.

A total of 65 percent of the lands in the kingdom are residential while 31 percent is commercial and only 4 percent is agricultural.

GAState has collected the basic data from the Ministry of Justice to construct the real estate price index and to track changes taking place in the real estate prices. GAStat stated that it has developed an integrated system to fulfill all requirements necessary for collecting and auditing data, along with calculating the index. This should develop sophisticated real estate statistical indicators that measure the performance of the real estate market in KSA, bridge the gap in real estate data, and satisfy international, regional and domestic requirements in this regard.

GAStat said it offers this data to researchers, planners, research centers and entities interested in economic affairs. The aim is to defines distinctive real estate statistical indicators that measure the performance of the real estate market in KSA, and bridge the gap of real estate data. In addition it should help relevant authorities take sound economic decisions in this regard. This Index data is also helpful in the economic and statistical analysis of real estate price movements, and making predictions about real estate trends in the future.


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