Giving a cautious optimism for the real estate sector, the Saudi Real Estate Index increased by 1.2% in the first quarter (Q1) of 2020, as compared to the Q1 of the previous year.
As the residential market continue to soften for the first quarter, prices of residential plots increased by 2.1%, whereas the prices of the commercial and agricultural rose by 0.5% and 0.2% respectively, influencing the price index.
Drivers of the real estate market in Saudi can call it good news, owing it to the rise in residential prices and the overall index, as per the data given by the Saudi Arabia’s General Authority of Statistics.
Despite current headwinds in major industries and challenging market conditions due to Covid-19, the progress in the real estate sector of Saudi in the first quarter indicates positive results in the long-term. This increase in the price index also expands the government’s main target of increasing home ownership to 60% the end of 2020.