Saudi real estate inflation cools to 1.3pc

RIYADH, Oct 20 (Arab News): Saudi Arabia's real estate inflation slowed to 1.3 per cent in the third quarter of 2025, driven by a softening residential market that offset stronger commercial sector gains, official data showed.
According to the General Authority for Statistics, the annual increase in the real estate price index decelerated sharply from 3.2 per cent in the previous quarter, with the index rising to 103.9 from 102.6 a year earlier.
The residential sector, which carries the greatest weight in the index, fell 0.9 per cent year-on-year, led by a 1.7 per cent drop in apartment prices.
This follows the government's efforts to cool surging property prices, particularly in Riyadh.
In September, Saudi Arabia's Cabinet introduced new regulations to stabilize rents in the capital, including a five-year freeze on increases for residential and commercial properties within the city's urban boundaries, effective Sept. 25. The move came after an April decision to raise the annual fee on undeveloped land from 2.5 per cent to as much as 10 per cent of its value, under Cabinet-approved reforms - White Land Tax Law - aimed at correcting market imbalances.