Knight Frank names Saudi real estate market as one of the world's worst performing over the past year
Property prices in Saudi Arabia are among the worst performing in the world, according to a new global study.
Knight Frank's Global House Price Index for the first quarter of 2018 revealed that values in the Gulf kingdom were down marginally by 0.2 percent over the past 12 months.
Saudi Arabia was ranked 51st out of 57 countries covered by the index, with Peru named as the worst performing real estate market with a 4.2 percent drop.
The rate of price decline in Saudi Arabia quickened over the past three and six months, down by 0.7 percent and 0.9 percent respectively, according to Knight Frank.
Globally, prices rose by 4.8 percent on average in the year to the end of March, it added.
Hong Kong led the index for the first time since the second quarter of 2015 with nearly 15 percent annual growth.
Knight Franks said house prices are rising in 86 percent of the 57 countries tracked by the index although only 9 percent of the markets tracked registered price growth above 10 percent, down from 18 percent a year ago.
North America (6.6 percent) remained the strongest performing world region.
Kate Everett-Allen, head of international residential research at Knight Frank said: “Europe’s recovery is now well underway, closer analysis confirms 11 of the 15 strongest-performing housing markets globally were in Europe at the end of March.”
In February, JLL said prices in the Saudi capital Riyadh decreased by 4 percent over the year while rents decreased by 5 percent annually.