RIYADH: 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, as shown by official data. According to the General Authority for Statistics, real estate prices in the residential sector recorded a 1.1 percent annual increase, driven by a rise in the cost of land plots by 1.2 percent. “Given the heavy weight of the residential sector, it had a significant impact on the general index,” said GASTAT in the report. However, 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. Meanwhile, commercial and agricultural property rates declined by 0.1 percent and 0.3 percent respectively, constraining the rise of the index – a statistical tool for measuring the relative change in real estate prices in Saudi Arabia. It grew by 0.2 percent in the third quarter compared to the three months ending in June because of a 0.4 hike in residential sector prices. The prices of villas decreased by 0.3 percent quarter-on-quarter, while apartments fell by 0.1 percent. “The prices of residential buildings stabilized and did not record any significant relative change,” said GASTAT. Agricultural property prices remained unchanged during this period, the report added. The commercial sector also echoed a similar sentiment as prices slipped by 0.1 percent, driven by a proportionate fall in commercial land rates. In August, Saudi Arabia unveiled a real estate market initiative to improve property transactions, spanning ownership transfers, purchases, sales and mortgages. As part of the initiative, the government is also launch a real estate stock exchange that will provide services for sorting and merging real estate deeds in cooperation with the Ministry of Municipal, Rural Affairs and Housing and the Saudi Central Bank.