Methodology and Quality Report for Real Estate Price Index Statistics 4.1

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Methodology and Quality Update

Latest Update on Methodology and Quality


Statistical Presentation

Data description

The Real Estate Price Index is an economic indicator that measures changes in the prices of residential and commercial real estate, as well as agricultural land, over time. The index is used as a tool to monitor real estate price movements in the market and reflects the relative changes in the prices of various types of real estate compared with the base period. The index also serves as a key tool for fiscal and monetary policymakers in Saudi Arabia.
The Real Estate Price Index is a survey conducted to collect data on the key characteristics as follows:

  • Real Estate Price Index.
  • Price index series and annual and quarterly changes by sector and property type.
  • Price index series and annual and quarterly changes by administrative region.

Classifications

Apply the following classifications in the Real Estate Price Index:
Classification of real estate categories:
The Real Estate Price Index covers the three main real estate sectors and eight property categories, as follows:

  • Residential sector: Residential land plot, villa, apartment, and floor unit.
  • Commercial sector: Commercial land plot, building, and showroom or shop.
  • Agricultural sector: Agricultural land.

Classification of administrative regions:
13 administrative regions in the Kingdom of Saudi Arabia.
The classifications are available on GASTAT’s website: www.stats.gov.sa 

Statistical concepts and definitions

Terms and concepts of the Real Estate Price Index:

  • Index number:
    A relative number that measures the change in one or more phenomena. It is obtained by comparing the value of the phenomenon in the comparison period to its value in the base period.
  • Real Estate Price Index:
    It is a statistical tool to measure the relative change in real estate prices between two time periods.
  • Real state:
    Fixed assets represented by lands and buildings.
  • Relative importance of a real estate type:
    It is the ratio of the total value of transactions for one real estate type to the total value of transactions for all real estate types in the base year.
  • Base year:
    It is the year or a period which the prices of the comparison year or comparison period are attributed to. When the base year is chosen, it should be a normal period characterized by stability and being free from sudden and serious conditions, such as: economic crises and wars. It must also be relatively close to the comparison period.

Data sources

The primary data source for the Real Estate Price Index is administrative records.
They are divided into two categories:
Real estate transaction data:

  • REGA.
  • Ministry of Justice.
    Supplementary data:
  • nternal sources: Census data and residential clusters.
  • External sources: Ministry of Municipalities and Housing for land plot data and satellite imagery.
    The main indicators published for the Real Estate Price Index are:
  • Real Estate Price Index.
  • Annual change in real estate prices.

Designing the data collection tool

Data are collected using standardized data request forms sent to data-owning entities to obtain periodic, harmonized, and well-documented data derived from administrative records related to the Real Estate Price Index indicators.

Questionnaire test (cognitive test)

Not applicable, as the statistical product is register-based and relies on administrative data available from the relevant entities.

Statistical population

The statistical population of the Real Estate Price Index consists of all real estate transactions officially recorded in Saudi Arabia.

Sample Design

Not applicable, as the Real Estate Price Index relies on administrative data available from the relevant entities.

Statistical unit (sampling unit)

The statistical unit in the real estate price index is the registered real estate transaction.
A real estate transaction refers to any sale or purchase of a property officially documented by the Ministry of Justice or the REGA, for which the transaction price and property characteristics (such as the neighborhood, property type, and area) are recorded.

Data collection

Data collection from administrative records:
In coordination with the relevant GASTAT departments responsible for conducting the survey and managing data collection, the administrative data for the Real Estate Price Index Statistics publication are obtained from REGA and MoJ, including real estate transaction data. 
These data are stored in GASTAT's databases after undergoing validation and review processes in accordance with approved statistical methods and recognized quality standards. The data source is consulted whenever errors are identified or observations are made regarding the data. In addition, the administrative data are examined to ensure their completeness and consistency and to prevent duplication.

Data collection frequency 

The data collection process for the Real Estate Price Index is conducted on a weekly basis.

Reference area

The Real Estate Price Index covers real estate transactions recorded in all 13 administrative regions of Saudi Arabia.

Reference period (time reference)

Reference period of the variables or dataset is as follows:

  • Quarterly indicator data are based on data from the previous quarter.
  • Annual indicator data are based on data from the previous year.

Base period

The base period used to calculate the Real Estate Price Index is 2023.

Measurement unit

All indicators are calculated as percentages of the quarterly and yearly changes in the indices, such as: The index achieved an increase of 4.0% on a quarterly basis.

Time coverage

The product data cover real estate transactions from 2014 through the current quarter of 2026.

Publication frequency

The results of the Real Estate Price Index Statistics are published on a quarterly basis in accordance with the approved statistical plan.


Statistical processing

Error detection

The data are reviewed, validated, classified, and subjected to preliminary processing to ensure their accuracy and enhance the quality of the statistics produced by applying the following procedures: 

  • Application of error detection and correction rules.
  • Processing of the real estate sector based on street width information.
  • Processing of property types through linkage with supplementary data, the geographic artificial intelligence model, and census information.

The data for the current publication year are also compared with those of the previous year to ensure their integrity and consistency. All outputs are then stored and uploaded to the database in preparation for the extraction of results by specialists using modern technologies and software designed for this purpose.

Data integration and matching from multiple sources 

Not applicable, as the Real Estate Price Index relies on administrative record data derived from real estate transactions and supplementary data provided by the relevant entities. The indicators are calculated separately without performing data integration or matching.

Imputation and calibration

After data validation and processing are applied. The data are processed using statistical analysis techniques, such as the R software, by applying the following procedures:
Data Coding:
In the Real Estate Price Index, information is coded internally through an automated process that is reviewed by a dedicated team.
Data editing:
At this stage, specialists at GASTAT process and analyze the data. This step is based on the following procedures:

  • Sorting and arranging data in groups or different categories in a serial order.
  • Summarizing detailed data into key points or data.
  • Combining many data segments and ensuring their interconnection.
  • Handling incomplete or missing data.
  • Processing illogical data.
  • Converting data into statistically significant data.
  • Arranging, presenting and interpreting data.
    Methods for calculating statistical indicators: 
    GASTAT adopts a stratification methodology to ensure price homogeneity across properties and applies the geometric Laspeyres formula in compiling and calculating the Real Estate Price Index, in accordance with international standards for calculating the main indicators of the Real Estate Price Index, as follows:
  • Base year:
    The base year is 2023 and is updated periodically. At this stage, the weights are updated based on the average price per square meter for each item, taking into account the location and property type.
  • Stratified methodology:
    The strata are constructed from the lowest level to the highest level, based on the following: 
    -    First, the location is defined as follows: A region, city, neighborhood, or a level below the neighborhood (or a combination of neighborhoods, where necessary).
    -    Second, classifying the property into one of the property types covered by the Real Estate Price Index, such as land, villas, apartments, etc.
    -    Finally, a stratum is defined as a property type within the specified location. To manage the balance between homogeneity and sample size in a stratum, we set a minimum number of trades within each stratum. This ensures that each stratum contains a sufficient number of trades to be statistically significant, while maintaining sufficient uniformity to accurately reflect market pricing trends for similar properties.
  • Geometric Laspeyres formula:

Where:

  • I: It is the indicator at each classification level.
  • t: It is the period (quarter).
    Exponent: The weight of the item divided by the total weights of each level.
    The indicator is then aggregated at the detailed levels to calculate the following indicators:
  • Quarterly change by sector and property type.
  • Indices and rates of change by sector and property type for the quarter.
  • Price index series and annual and quarterly changes by sector and property type on a quarterly and annual basis.
  • Price index series and annual and quarterly changes by administrative region on a quarterly and annual basis.

Seasonal adjustments

Not applicable, as only the final results will be published without seasonal adjustment.

Adjustment of preliminary results 

Not applicable, only final results will be published. No preliminary results are published that require subsequent revision or review, in accordance with the approved methodology for the Real Estate Price Index Statistics.


Quality dimensions

Suitability

A criterion that measures the extent to which the statistical product meets users' needs.

User needs 

Internal users in the GASTAT for the real estate price index data:

  • National accounts.
  • Tourism.
    Several external users benefit significantly from the Real Estate Price Index Statistics, including:
  • Government entities.
  • Regional and international organizations.
  • Research institutions.
  • Media.
  • Individuals.

Key variables used by external users:
 

Government entities

General index and detailed indices by property type.

Regional and international organizations


Completeness 

The Real Estate Price Index data are based on two primary sources that provide comprehensive information on real estate transactions: REGA and MoJ. All necessary procedures have been implemented to ensure the completeness of the data and the production of the required statistics.

Accuracy and reliability 

A criterion that indicates the extent to which calculations or estimates are close to the true or accurate values that reflect reality.

Overall accuracy 

  • Data quality is enhanced through the selection of researchers based on a set of practical and objective criteria related to the nature of the work, as well as their qualification and training.
  • The data is examined against previous years to identify any significant changes.
  • The internal consistency of the data is checked before it is finalized.
  • The links between variables are checked and coherence between different data series is confirmed.

Timeliness and punctuality 

Timeliness A standard that indicates the length of time between the availability of information and the occurrence of the event.
Punctuality It reflects the time lag between the data publication date and the target date when publication actually occurs.

Timeliness 

GASTAT uses the Special Data Dissemination Standard (SDDS) issued by the International Monetary Fund. According to this Standard, all statistics agencies are required to publish data on a quarterly basis, and with a delay of not more than mid of year (90 days) after the end of the reference period.

Punctuality 

The results are published in accordance with the release dates specified in the Statistical Calendar for the Real Estate Price Index on GASTAT's website.
The data are available at the expected time, as scheduled in the statistical release calendar, If the publication is delayed, reasons shall be provided.

Coherence and comparability

A standard that refers to the necessity of internal and temporal consistency of statistics, their logical coherence, and their comparability and integration across different regions and sources.

Comparability - geographical

The statistical data related to the Real Estate Price Index are fully comparable geographically within Saudi Arabia, as well as at the regional and international levels.

Comparability - over time 

The survey began in 2014 as a quarterly index, and the following are the key changes that have occurred in recent years:

  • 2014: 
    Base year: The real estate classifications (residential, commercial, and agricultural) were adopted, and MoJ served as the sole data source.
  • 2023:
    Base year update: The methodology was reviewed, and an artificial intelligence model was adopted to process property classifications based on satellite imagery. In addition, data sources were further diversified.

Coherence- Cross domain

Not applicable, as there is no direct linkage between the Real Estate Price Index and other statistics.

Coherence- Sub-annual and annual statistics 

Not applicable, as the Real Estate Price Index Statistics are published on a quarterly basis, and there are no monthly or annual publications.

Coherence- National Accounts 

The Real Estate Price Index Statistics are integrated with the requirements of the National Accounts through the adoption of statistical classifications. The results of the publication are used as key inputs for compiling Gross Domestic Product (GDP) within the National Accounts framework. Continuous coordination with national accounts statistics ensures consistency between the publication's results and macroeconomic indicators.

Coherence- Internal 

The Real Estate Price Index estimates for the reference period have full internal consistency, as they are all based on the same set of microdata and are calculated using the same estimation methods.

Accessibility and clarity

The accessibility of data to users, the availability of microdata or aggregated data, and the availability of the Methodology and Quality Report.

News 

The announcements for each publication are available on the statistical calendar as mentioned in 9.1. The news can be viewed on the website of GASTAT on the link: 
News

Publications

GASTAT regularly publishes the Real Estate Price Index publications and reports in accordance with a pre-established dissemination plan, and they are made available on GASTAT's website.  GASTAT is keen to publish its results in a manner that serves all types of users, including publications in various formats containing dissemination tables, data and indicator charts, the Methodology and Quality Report, and the questionnaires used, in both Arabic and English.
The results of the real estate price index are available at:
Real Estate Price Index 

Online database

The data is published on the statistical database:
Statistical database. 

Microdata accessibility

Not available.

References and standards

The concepts, definitions, issues, and classifications of the Real Estate Price Index are based on international standards.
And alignment is made with:

Quality assurance

GASTAT is committed to adhering to the following principles: Impartiality, user orientation of the statistical product, quality of processes and outputs, efficiency of statistical processes, and reduced respondent burden. 
Data are validated through quality assurance procedures and controls implemented at various stages of the statistical process, including: data entry, data collection, and other final controls.

Quality assessment

GASTAT carries out all statistical activities in accordance with the National Model (Generic Statistical Business Process Model (GSBPM)). During the comprehensive evaluation phase, which is the final phase of the GSBPM, the information collected throughout each phase and sub-process is used to prepare an evaluation report that summarizes all quality-related challenges associated with each statistical process. The report serves as an input to continuous improvement and development activities.

Confidentiality

Confidentiality - Policy

According to Royal Decree No. 23 dated 07/12/1379, data must always be kept confidential and must be used by GASTAT for statistical purposes only.
Therefore, the data is protected in the data servers of GASTAT.

Confidentiality - Data Treatment

Data were displayed in appropriate tables to facilitate their summarization, comprehension, and results extraction. Also, to compare data with other data and extract statistical meanings for the study community. It is also easier to check tables without the need to see any sensitive or confidential data, which violates the confidentiality of statistical data.

Publishing policy

Statistical calendar

The Real Estate Price Index has been included in the Statistical Calendar.
Statistical Calendar

User accessibility

One of GASTAT's objectives is to better meet its clients' needs. Therefore, it provides them with the results of the Real Estate Price Index publication immediately upon its release.
GASTAT also receives clients' questions and inquiries regarding the publication and its results through various communication channels, including:

  • GASTAT’s official website:  www.stats.gov.sa
  • GASTAT's official email address:  info@stats.gov.sa
  • Official visits to GASTAT’s official head office in Riyadh or one of its branches in Saudi Arabia.
  • Official letters.
  • Statistical telephone: (199009).