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Saudi Arabia’s residential transactions slow down

CBRE Real Estate Market Review shows a decrease in Saudi Arabia’s residential transactions compared to 2022

Saudi Arabia’s residential transactions slow down

In the year to Q3 2023, the total number of residential transactions totalled 61,473, equating to a total value of $12.2 billion (SAR45.9 billion). In comparison to the same period in 2022, the total number of transactions demonstrated a drop of 7.0%, while the total value for these transactions decreased by 11.3%.

According to CBRE Group, the total number of mortgage contracts in the year to date to Q3 2023 fell by 37.5%, where the total value registered, which totalled $5 billion (SAR18.4 billion), fell by 38.3%. Single-family homes in Saudi Arabia accounted for 69.8% of the total value of lending, followed by apartments and land at 24.8% and 5.4% respectively.

In Riyadh, as at September 2023, the average price for apartments rose to $1,274 (SAR4,780) per square metre, a growth of 16.1% compared to a year earlier. During this period, Khobar s average apartment prices saw an uptick of 2.9% to reach $913 (SAR 3,424) per square metre, while Dammam’s average apartment prices rose by 2.4% to stand at $763 (SAR2,862) per square metre. The only apartment market to regress in terms of prices was in Jeddah, where average apartment prices fell by 9.5% to reach $1,032 (SAR3,872).

Increasing Prices in Saudi’s Villa Market

In the villa segment of the market, average prices in Riyadh, Dammam and Khobar have shown gains in the 12 months to Q3 2023. In Riyadh, the average price for villas improved by 1.2% year-on-year, reaching $1,497 (SAR5,615) per square metre.

Dammam and Khobar s average villa prices increased by 1.8% and 3.2% over the same period in 2022, where average prices registered at $951 (SAR3,565) and $963 (SAR3,612) per square metre, respectively. Jeddah s villas segment contracted in the year to Q3 2023 by 3.0%, where average villa prices stood at $1,443 (SAR5,411) per square metre.