The weekly activity of the real estate market in Saudi Arabia shrank again by 21%, and the total value of real estate transactions during the past week stabilized at less than the level of 2.9 billion riyals.
The decline in market activity included all major sectors, as the value of deals in the commercial sector declined by a record rate of 28.7%, and the value of deals in the residential sector decreased for the third week in a row by 14.5%. The total value of deals in the agricultural and industrial sectors also decreased by 21.4%.
The local real estate market is close to completing the eighth consecutive month of recession, which has clouded its activity since the beginning of the second half of last year, and is still continuing until the latest data issued by the Ministry of Justice at the end of last week, according to Al-Eqtisadiah newspaper.
Real estate activity was negatively affected by the pressures resulting from the high interest rate to its highest level in the past 22 years, and the decline in the volumes of real estate loans granted to individuals, which according to last year’s data recorded an annual decline of about 20%, which is the annual decline for the first time since the publication of real estate loan data. In the second half of last year, its effects were reflected in a decline in the total value of real estate transactions by 24.4%, compared to the first half of the same year.
The pace of decline dominated the residential sector for the third week in a row, and the value of its weekly deals decreased by 14.5%, as a result of which it settled below the level of 1.5 billion riyals, “52% of the total value of weekly deals in the real estate market,” followed by the commercial sector, with a record weekly decline. Its percentage reached 28.7%, the value of its deals settled at about one billion riyals, or 36.1% of the total value of weekly deals in the real estate market.
The total value of deals in the agricultural and industrial sectors recorded a weekly decrease of 21.4%, and settled at the end of the week at 339 million riyals, or 11.8% of the total value of weekly deals in the real estate market.
As for the weekly performance level for the rest of the other indicators of the local real estate market, the number of real estate transactions recorded a weekly decrease of 20.5%, stable at the end of the week at the level of 2.9 thousand transactions, and the number of sold properties decreased by 19.9%, and the weekly sales volume of the market stabilized at A level below three thousand sold properties, while the total area of real estate transactions executed during the week recorded a record high of 125.7%, and the total area settled at 31.5 million square meters.