Real estate transactions in Saudi Arabia have plummeted by 14 percent since last year, according to official statistics.
The Ministry of Justice issued figures showing that the total value of real estate deals completed so far this year has reached SR278 billion ($74 billion), according to the Saudi Gazette. The report included both commercial and residential deals.
The value of residential deals this year was SR186 billion ($49 billion) – representing a 14 percent decrease from the same period in 2014.
No information was given on the change for commercial transactions. However, the ministry reported that the slump had been recorded since the beginning of the summer.
It was particularly marked in several areas of Jeddah, and in areas of low population density the volume of deals dropped by as much as 30 percent.
A property developer named as Ibrahim Al Subaie was quoted in the Saudi Gazette as saying: “The percentage of real estate deals in some parts of north and south Jeddah and in Asfan and Dhahban dropped by 20 percent since the beginning of the summer holiday.
“In areas with low population density, the rate dropped by 30 percent,” he confirmed.
However, some high-demand areas including King Fahd Road, the Corniche and Prince Sultan Road have seen little change in the number of transactions since the start of the summer holiday.
Abdullah Al Ahmari, head of Jeddah Chamber of Commerce and Industry’s real estate pricing committee, said property prices, and transactions, have been hit by falling demand in recent months.
“There has been an obvious drop since the beginning of the year and the drop is expected to last throughout the next three months. The real estate market has many offers but there is not much demand.
“Central, commercial and administrative areas and districts are the least affected due to their dynamic life.”For all the latest real estate 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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