Saudi Real Estate Market Remains Solid With Deals Worth $57 Bn
The Saudi real estate market recorded deals worth more than 214 billion riyals ($57 billion) during the first nine months of this year, according to real estate exchange data. Real estate experts, who spoke to Asharq Al-Awsat, noted that the recent figures highlight the strength, solidity and cohesion of the Saudi real estate market, despite the surrounding factors, such as the continued rise in interest rates and the decline in financing granted to individuals. Real Estate expert Eng. Ahmed Al-Faqih said that the value of real estate market deals, despite its relative decline from about 260 billion riyals (69 billion dollars) in 2022, confirms the solidity of the real estate market, despite the continued rise in interest rates, and the decrease in the volume of real estate financing granted to individuals by banks and financing companies. Al-Faqih pointed to three factors that he said contributed to this value. First, the scarcity of supply in the residential market, whether land, apartments, or villas, which led to an increase in their prices, according to the periodic reports of the General Authority for Statistics (GASTAT). The second factor is the large demand for real estate. This gave positive signals to property owners and supported adherence to the prices offered, he underlined. As for the third factor, Al-Faqih pointed to the “open appetite of major businessmen and real estate entities to acquire many undeveloped land deals at billion-dollar prices, which clearly indicates that we are facing a very promising market in the near future, in light of unprecedented support from the government.” Al-Faqih expects next year to witness greater momentum in the Saudi real estate market after the non-Saudi ownership and investment law comes into effect.
Tags : Ahmed Al-Faqih Asharq Al-Awsat scarcity of supply residential market land apartments villas General Authority for Statistics GASTAT Al-Faqih