Knight Frank Global House Price Index reveals that real estate market in Saudi Arabia is one of only seven worldwide to show annual price declines
Saudi Arabia's real estate market was one of only seven worldwide to register price declines in the second quarter of 2018 compared to the year-earlier period.
While the Knight Frank Global House Price Index increased by 4.7 percent on average in the year to June, the property market in Saudi Arabia saw a 1.3 percent fall in prices.
Prices in the Gulf kingdom also declined by 1.5 percent in the six months to June and by 0.8 percent during the second quarter itself, Knight Frank's data revealed.
The country was also ranked 55th out of 57 markets analysed, amking it one of the worst performers in the world.
Globally, Malta led the index for the first time with a 17 percent annual price increase as central and eastern European countries performed strongly.
Knight Frank said all eyes are on Hong Kong (16 percent), Singapore (9 percent) and New Zealand (7 percent) where new property regulations have been introduced in the last three months.
The real estate consultancy said in the report: "Only seven countries and territories (12 percent of those monitored) registered a decline in prices in annual terms and no market has recorded a double-digit decline in house prices over the last six quarters.
"Five years ago, 30 percent of countries were recording a drop in house prices, and ten years ago, in the wake of the financial crisis, the figure was as high as 70 percent.
"Yet despite this improving scenario, at 4.7 percent the index has recorded its slowest rate of annual growth since Q3 2016.
Our analysis confirms that whilst fewer countries and territories are seeing a decline in house prices, where prices are rising, they are rising at a more moderate pace."