The real estate price index rose 2.6% y-o-y in 3Q 2024, driven by rising costs of residential real estate and commercial units, according to the latest General Authority for Statistics (Gastat) real estate index (pdf).

The culprit? The uptick owes to a 1.6% hike in residential real estate prices, while prices increased 1.9% y-o-y for apartments, and 1.5% for villas.

Bucking the trend: Prices of residential floors saw a decrease of 1.8%, and a 6.4% in commercial unit prices. There was also a 8.7% decline in the prices of agricultural real estate.

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REMEMBER- Rent has been cited as a major culprit driving consumer inflation in the Kingdom, with house rental prices — the heaviest weighted component in the domestic consumer basket — rising 11.2% y-o-y in September, fueled by a 10% surge in apartment rentals. This led to a 9.3% y-o-y increase in the prices of housing, water, electricity, gas and other fuels.

On a quarterly basis: The real estate price index inched up 0.8% in 3Q, compared to the previous quarter, driven by a 0.2% increase in the prices of the residential sector, a 0.4% rise in villa prices, and a 1.8% increase in the prices of floors. Commercial real estate prices were also up 3%, driven by a 3.2% increase in commercial land plot prices, a 0.4% increase in building prices, and a 2.4% increase in gallery/shop prices. Meanwhile, agricultural prices fell 7.7% q-o-q in 3Q.

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