Riyadh's residential real estate market remained subdued during the third quarter of 2017 with sales prices falling amid declining purchasing power, JLL has said in a new report.
The property consultants said in its Q3 market overview report that while the number of apartments sales transacted increased 39 percent and villas 7 percent on an annual basis, they did so at lower price levels.
Apartment sale prices declined 4 percent and villas 5 percent year-on-year.
JLL said apartments have generally performed more strongly than villas, as declining purchasing power has seen a continued shift in demand from villas to apartments.
The residential market has also experienced further downward pressure in the rental sector as a result of continued expatriate departures, the report said.
Villa rents fell by 4 percent and apartments by 6 percent on an annual basis.
However, it noted that the affordable housing sector has witnessed positive activity as the result of the ongoing efforts by the Ministry of Housing to increase home ownership, in line with the National Transformation Program.
The Ministry of Housing distributed almost 18,000 affordable residential products in Riyadh during Q3, including off-plan residential units (9,500 units), cost-free developed residential land plots (1,100 plots) and subsidised housing loans (6,900 loans).
The Ministry is targeting assistance to 280,000 families across the kingdom in 2017 of which 185,000 have been allocated as at Q3.
JLL's report said there were no major completions in the Riyadh market during Q3, with the only deliveries being approximately 5,000 villa and apartments in small scale standalone projects scattered across the city. This brings the total residential stock to 1.17 million units.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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