The Saudi market is growing significantly, which means it needs accurate and reliable sources to enable investors to make successful investment decisions.

One of the most important bodies that helps investors is the Real Estate General Authority, which was established to regulate and develop the non-governmental real estate sector and encourage investment.

It plays an effective role in supporting the real estate market  by providing a clear idea of the nature of the Saudi market and its fluctuations by geographical scope and regulates the contractual and legal affairs of the market through several sub-platforms, most notably the real estate index platform, which provides the latest real estate statistics by real estate type and geographical scope.

Below we provide information about the real estate index and how it is important in your investment decision.

What is a real estate index? 

it is an electronic platform managed by the General Authority for Real Estate in Saudi Arabia, where it provides data and statistics on the rates and numbers of sales and rents that have already been held and registered with documents and documents documented by the Ministry of Justice, and this is on the real estate market in the Kingdom in various fields and sectors, including all sectors and neighbourhoods.

 This is presented in numbers and graphs, with the possibility of making a comparison between different periods and between different cities to obtain an in-depth analysis according to the specified time and includes various types of properties, such as residential and commercial properties, among others.

This is illustrated by clear information in the Ministry of Justice’s Real Estate Transactions Index, which helps investors form a sound understanding before making any decisions.

How is the real estate index used? 

After entering the General Authority for Real Estate, the user first selects the geographical scope by entering the name of the city and the name of the neighborhood.

Then, he selects the time he needs, whether it is annual, quarterly, or monthly.

He can also enter the type of property, for example, Land prices in Riyadh in the last month. Here the type, geographical area and time have been determined and thus the picture is formed in front of the investor about sales, rents and a comparison between neighborhoods, which helps him in making the best real estate investment decision and which one is better to invest in.

It is also considered a real estate deals index as it displays all deals for all types of properties, residential properties, commercial and administrative.

Types of Real Estate Index

The Real Estate General Authority in Saudi Arabia offers two types of real estate index according to the geographical and temporal scope and the type of property previously selected by the user: 

Sales Index:

 It is considered one of the most important indicators that reflect the market value of the property in a specific area, as it is considered the real estate deals index, as all deals are filtered by the Ministry of Justice and exclude the deals that are exaggerated and far from the real price in that area,

and based on that, an appropriate price is determined for the meter within that geographical area in a specific time and also determines the total value and number of deals for the area based on what was registered in the Ministry of Justice with official documents and documents, and this helps to achieve a fair value and build a sound investment decision.

Time

 Rental Index: 

By following the same steps of determining the geographical scope, property type, and time, the same applies to rent, so the real estate index determines the price per meter, the average rental price, and the number of rental transactions that took place in that area, which helps the investor to build his knowledge and gain insight before making any decision 

The real estate index helps greatly in determining the sale and rental processes and knowing the value and number of deals, which contributes to knowing the prices, especially if the supply exceeds the demand, this leads to lower prices, but if the demand exceeds the supply, the prices rise, so it determines the index of real estate deals that take place in the Saudi market to achieve the maximum benefit before starting any investment. 

The importance of real estate indicators 

 we can conclude the importance of the real estate index, which is summarised in several points, the most important of which are 

Market evaluation: 

If an investor wants to know the prices of land in Riyadh, for example, the real estate index can build a specific view of that market and know all the deals and prices, which serves the investor in making his investment decision based on a clear study 

Determine investment opportunities: 

Determining the geographical area, time, and type of property, reduces the size of the search and opens wide horizons for the investor to identify the best opportunity to generate a return on investment 

Assess risks:

The Real Estate Transaction Index by Neighborhood provides an opportunity to monitor and identify risks such as inflated prices or declining demand, as well as details of real estate transactions especially since it is based on actual reports from the Ministry of Justice’s Real Estate Index and verified documents

In conclusion, the Kingdom of Saudi Arabia is considered one of the most active real estate markets, with numerous entities supporting investors in making decisions based on reliable data.

The Real Estate Index of the General Real Estate Authority is an essential tool for understanding the real estate market through the details and analysis of real estate transactions, in conjunction with official data released by the Ministry of Justice, which helps investors make more accurate investment decisions.

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