Saudi Real Estate Sales fall 4.5%

the real estate market in Saudi Arabia recorded an increase of 13.0%

The weekly transactions of the real estate market in Saudi Arabia recorded an increase of 13.0% on the total value of their transactions, to settle by the end of last week at below SAR4.4bn, driven by the record growth in the value of commercial sector transactions, which recorded weekly growth of about 43.3%, against lower growth of weekly value of the residential sector deals by 6.3%.

The total number of real estate transactions recorded a weekly decline of 4.6%, to settle by the end of last week at 7794 real estate transactions, affected by the largest decline in the number of residential real estate transactions, which amounted to 4.8%.

The total number of real estate sold during the week decreased by 4.5%, to settle at the end of last week at 8510 real estate sold, which was further affected by the decline in the number of real estate sold in the residential sector, which fell during the week by 5.6%, compared to the rise of the commercial sector by 5.1% , according to the Saudi newspaper “Al-Eqtisadiah”.

Average prices of residential lands

The quarterly average per square meter of residential land till the end of last week decreased by 9.4%, compared to the level recorded during the second quarter of this year, to settle at the end of the period at the level of SAR992 per square meter, compared to its level during the second quarter of SAR1094 per square meter, while it reached a stable level, compared to its level during the third quarter of last year (SAR992 per square meter).

At the level of the main cities, comparing the average prices of residential land with its level during the second quarter; Qatif recorded the highest growth on an average by 5.3% (SAR1087 per square meter), while Tabuk, recorded the largest decline on an average of 19.3% (SAR736 per square meter).

As for the major cities (Riyadh, Jeddah, and Dammam), the average land price movements were as follows: the average decline in Riyadh was 9.9% (SAR1473 per square meter), compared with its level during the second quarter of this year, while recording an annual decline of 8.3% compared to the same quarter last year.

A low average in Jeddah by 2.1% (SAR1182 per square meter), compared with its level during the second quarter of this year, while recording an annual decline of 19.3%, compared to the same quarter last year. The average decline in Dammam decreased by 3.5% (SAR1515 per square meter), compared with its level during the second quarter of this year, while it recorded an annual decrease of 6.1%, compared to the same quarter last year.

Average prices of residential apartments

The quarterly average of residential apartments till the end of last week decreased by 1.3% compared to the level recorded during the second quarter of this year, to settle at the end of the period at the level of SAR453,800 per apartment, compared with its level during the previous second quarter of SAR459,800 per apartment. While it recorded an annual increase of 10.8%, compared with the average price during the third quarter of last year (SAR409,700 per apartment).

At the level of major cities, comparing the average prices of residential apartments to its level during the second quarter of last year; Hail recorded the highest growth on an average of 14.8% (SAR333,000 per apartment), while Al-Ahsa recorded the largest decline on an average of 12.9% (SAR322,000 per apartment).

As for the major cities (Riyadh, Jeddah, and Dammam), the movements of the average prices of residential apartments are as follows: The average declined in Riyadh by 2.4% (SAR483,100 per apartment), compared with the price level during the second quarter of this year, while the average price of residential apartments in Riyadh rose by 21.3% year on year, compared to the same quarter last year.

In Jeddah, the average price of residential apartments rose by 2.0% (SAR462,600 per apartment), compared with the price level during the second quarter of this year, while the average price of residential apartments in Jeddah recorded an annual increase of 4.5%, compared to the same quarter during last year.

Finally, in Dammam, the average prices of residential apartments decreased by 3.2% (466,200 per apartment), compared with the price level during the second quarter of this year, while the average prices of residential apartments in Dammam recorded an annual increase of 22.1%, compared to the same quarter over the past year.