https://arab.news/5mq8k
RIYADH: Saudi Arabia is evolving as a growing construction site globally, with giga-projects spearheading the Kingdom’s economic diversification journey, according to a top official.
Speaking at the Real Estate Future Forum in Riyadh, Abdullah Al-Hammad, CEO of the Kingdom’s Real Estate General Authority, said that Saudi Arabia’s real estate sector is seeing huge transformations.
He further noted that the property market is one of the key pillars of Saudi Arabia’s economy and added that it is making significant contributions to the Kingdom’s gross domestic product.
On Jan. 22, Ahmed Al-Rajhi, Saudi Arabia’s minister of human resources and social development, said at the forum that property development has emerged as a powerhouse for job creation and sectoral advancement in the Kingdom.
“What makes the real estate sector special is that, once it works, construction works, the supply chain works, the trade of construction materials works, and engineer works,” he said.
The minister added: “The real estate sector until recently was focusing on the trade of real estate and not the real estate development in its comprehensive concept today.”
The third edition of the forum is poised to explore sectoral developments, highlight major challenges, and delve into opportunities.
Under the patronage of Minister of Municipal and Rural Affairs and Housing Majid bin Abdullah Al-Hogail, the three-day event will host dialogues aligning with various strategic aspects of the real estate system, both globally and locally.
In October 2023, a report released by the Kingdom’s General Authority for Statistics revealed that Saudi Arabia’s real estate price index rose by 0.7 percent in the third quarter compared to the year-ago period, fueled by an increase in residential property values.
According to the report, real estate prices in the residential sector recorded a 1.1 percent annual increase in the third quarter of last year, driven by a rise in the cost of land plots by 1.2 percent.
GASTAT revealed that prices of buildings and villas declined annually by 0.9 percent and 3.8 percent respectively in the third quarter, while prices of houses fell by 0.1 percent.
The prices for apartments over the period did not witness any significant change.