The real estate price index rose 4.3% y-o-y in 1Q 2025, driven primarily by a 5.1% rise in residential property prices and a 2.5% uptick in commercial real estate prices, according to the latest data from the General Authority for Statistics (Gastat) (pdf). Meanwhile, prices in the agricultural sector declined by 1.1%.

Growth in the residential segment varied by property type, the data showed. Villas recorded the highest gains with a 10.3% y-o-y increase, followed by land plots (+5.3%), residential floors (+2.8%), and apartments (+1.2%).

The commercial sector also posted price growth, with galleries and shops up by 5.1%, followed by buildings (+3.1%) and land plots (+2.4%).

Quarterly highlights: The index grew 0.7% in 1Q 2025 compared to the previous quarter, supported by a 1.9% rise in residential prices. The increase in residential prices was led by a 3.2% increase in land plot prices and a 0.2% rise in both apartments and residential floors, offsetting the 1.4% decrease in villa prices.

Other sectors are seeing declines: Commercial real estate prices fell 2.1% q-o-q, while agricultural real estate dropped by 3.8% — both weighed down by falling land values.

Riyadh leads the market again: Riyadh posted a 10.7% y-o-y increase in 1Q 2025, followed by the Northern Borders (+8.7%) and Al Jouf (+8.2%). On the other hand, the Eastern Province saw a steep 5.5% decline, followed by a 4.4% drop in Asir.

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