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Population Growth Drives Saudi Real Estate Prices to 15th Consecutive Increase

A residential project of the Ministry of Municipalities and Housing (Asharq Al-Awsat)
A residential project of the Ministry of Municipalities and Housing (Asharq Al-Awsat)
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Population Growth Drives Saudi Real Estate Prices to 15th Consecutive Increase

A residential project of the Ministry of Municipalities and Housing (Asharq Al-Awsat)
A residential project of the Ministry of Municipalities and Housing (Asharq Al-Awsat)

Real estate prices in Saudi Arabia have continued their upward trajectory for the fifteenth consecutive quarter since early 2021. In the third quarter of this year, data shows a 2.6% year-on-year increase, driven by a 1.6% rise in residential property prices and a 6.4% increase in commercial properties, while agricultural land prices declined by 8.7%.
According to the General Authority for Statistics (GASTAT), Riyadh recorded the highest property price increase among Saudi regions in the third quarter, with a year-on-year rise of 10.2%, followed by Hail at 5%. In contrast, prices fell in nine administrative regions, with Al-Baha experiencing the steepest decline at 14.3%.
These latest figures are based on an updated methodology from the GASTAT, which uses 2023 as the new base year and incorporates a geographic AI model to better capture transaction types. Satellite images are also used to enhance data quality and accuracy. Methodological updates include broader geographic coverage to better represent administrative regions and revised property classifications, which were applied retroactively to data from 2021 onward.
Real estate experts told Asharq Al-Awsat that the steady rise in property prices since early 2021 reflects high demand for residential properties, fueled by sustained growth and government efforts to encourage homeownership under Vision 2030, which aims to increase homeownership rates among Saudi families to 70%.
Real estate expert Saqr Al-Zahrani explained that the price increase reflects rising demand for residential and commercial properties across Saudi cities and provinces, due to ongoing population growth, urban expansion, and more housing projects aimed at meeting high demand. Government efforts to support and expand residential projects have also played a significant role.
Al-Zahrani expects a slight continued increase in residential property prices in the fourth quarter of 2024, especially with the expansion of housing projects aimed at boosting homeownership in most cities. However, he anticipates this growth rate may moderate somewhat in 2025 if new regulatory measures, financing programs, or incentives are introduced to adjust demand.
In remarks to Asharq Al-Awsat, real estate expert Al-Aboudi bin Abdullah attributed the 2.6% increase in Saudi real estate prices in the third quarter this year, compared to the same period last year, to two main factors. First, residential property prices rose by 1.6%, driven by heightened developer demand in anticipation of further price increases and market activity, as interest rates are expected to remain low into 2025.
The second factor is the 6.4% rise in commercial property prices, spurred by demand for land and commercial and office projects. This demand aligns with major development projects launched under Saudi Arabia’s Vision 2030.

 

 

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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)

Dr. Abdul Hakim Elwaer, Assistant Director-General of the Food and Agriculture Organization (FAO), stated that the organization will take an active role at COP16, the UN conference on combating desertification, scheduled to take place in Saudi Arabia in early December.

In remarks to Asharq Al-Awsat, he expressed confidence that the conference—the first of its kind in the Middle East—would produce significant outcomes.

Elwaer’s comments came during a roundtable organized by FAO’s regional office in Cairo, attended by a select group of media representatives. The session focused on FAO’s participation in the upcoming conference and the importance of the Rio Trio —the integrated framework of the three major UN conventions addressing climate change, biodiversity conservation, and desertification.

Fida Haddad, FAO’s Program Officer for Land Rehabilitation and Climate Change, highlighted the interconnectedness of the three conventions and noted that COP16 would place a strong emphasis on land and water rehabilitation and their sustainable management.

Haddad pointed out that approximately 90% of the Middle East is affected by arid conditions. Despite this, local communities and Arab governments have made notable progress in addressing desertification and drought. She also announced that, for the first time, FAO has successfully placed food systems on the COP16 agenda, enabling discussions on how land rehabilitation can enhance food supply chains and systems.

Elwaer underscored FAO’s central role in achieving the second Sustainable Development Goal (SDG): eradicating hunger. He emphasized that FAO actively engages in the UN conventions on climate change, biodiversity, and desertification, which collectively contribute to this mission.

FAO’s focus, according to Elwaer, is on transforming food and agricultural systems to become more inclusive, efficient, and sustainable, aiming for better production, nutrition, and livelihoods. He highlighted the organization’s success in integrating these priorities into the agendas of the three conventions and collaborating with host countries on joint initiatives.

He further noted that Saudi Arabia’s hosting of COP16 is particularly significant for the region, which faces pressing challenges such as water scarcity, desertification, and food insecurity. The conference presents an opportunity for Middle Eastern nations to highlight these issues, explore solutions, and ensure their inclusion in global environmental discussions, not only at this event but in future COP sessions, he underlined.

Elwaer emphasized the growing global attention on desertification, as it is now impacting regions previously unaffected, such as southern Europe and parts of Latin America. These areas are witnessing alarming declines in arable land and forests, prompting them to seek lessons from the Arab world, which has developed resilience strategies to combat desertification over centuries.

FAO will have a strong presence at COP16, with two dedicated pavilions—one in the Blue Zone for official delegations and another in the Green Zone to engage civil society and conference participants, he said.

He added that in collaboration with Saudi Arabia and the UN, FAO will lead coordination on Food Day and Governance Day, scheduled for December 5 and 6, respectively. The organization will also participate in other specialized sessions throughout the conference.