By Gavin Gibbon
Latest report from Cavendish Maxwell reveals apartment prices were up but villas declined
Residential property prices in Saudi Arabia increased by 2.1 percent in the first quarter of the year, compared to Q1 2019, although commercial real estate saw a marginal 0.5 percent decline over the same period.
According to the latest 2020 Saudi Arabia Property Market Report from Cavendish Maxwell apartment prices were up by 2.2 percent, while villa prices declined by 2.6 percent, although the report tempered that with the undoubted impact of the current coronavirus pandemic, combined with continuing low oil prices.
It said: “Whilst the residential sector had started to show signs of recovery, the restrictions imposed towards the end of Q1 2020 to counter the spread of Covid-19 have impacted economic activity, extending to real estate, hospitality and retail, among others.
“The recovery is likely to face near term headwinds until clarity emerges on the trajectory of the pandemic and economic activity resumes.”
Dammam is the cheapest city in the kingdom to rent a two-bedroom apartment at SAR17,000 per annum, with the most expensive found in Jeddah (SAR88,000).
A three-bedroom villa in Al Khobar will set you back SAR62,500, compared to a similarly sized property in the capital Riyadh (AED85,000).
In terms of buying property, information is only provided for Jeddah and Riyadh, with a two-bed apartment costing SAR1,285,000 and SAR575,000 respectively.
A three-bedroom villa costs, on average, SAR2,575,000 in Jeddah and SAR2.8m in Riyadh.
According to the International Monetary Fund (IMF), Saudi Arabia’s economy is forecast to contract 2.3 percent in 2020 but bounce back in 2021, growing 2.9 percent.