RIYADH: Driven by rising property prices, Saudi Arabia’s Real Estate Price Index edged up by 0.8 percent in the second quarter of this year compared to the same period a year ago, official data showed. The report released by the General Authority for Statistics attributed the annual increase in the index to residential property prices rising by 1.1 percent and commercial by 0.2 percent in the second quarter compared to last year. Real Estate Price Index measures the relative change in property prices in the Kingdom. It is based on realty transactions available in the Ministry of Justice, the only official reference on the sector in the Kingdom. Meanwhile, residential prices increased because of an annual 1.2 percent appreciation in the cost of residential land during the period under review. “Given the heavy weight of the residential sector prices, it had a significant impact on the increase in this general index,” said GASTAT in the report. Residential prices increased by 0.1 percent in the second quarter compared to the first quarter. “Among other residential properties, the prices of apartments increased by 0.1 percent, while the prices of villas decreased by 1.7 percent and residential houses by 0.3 percent. The prices of residential buildings were stable in the second quarter of 2023,” the report added. The GASTAT report further pointed out that real estate prices stabilized in the second quarter of this year compared to the first three months. Compared to the first quarter, commercial sector prices decreased by 0.1 percent, driven by the fall in land prices by 0.1 percent and exhibitions by 0.6 percent. The report revealed that prices of commercial buildings and centers were also stable in the second quarter of 2023. Saudi Arabia’s real estate sector has witnessed massive growth after the launch of Vision 2030, which set specific strategies to diversify the Kingdom’s economy. In March, data by the Real Estate General Authority, or Ejar, revealed that residential and commercial rent deals almost doubled in value last year to reach SR76 billion ($20.2 billion) compared to SR41.9 billion in 2021. The report added that the total value of commercial rent transactions amounted to SR40.9 billion in 2022, while those of residential properties reached SR35.1 billion.