Saudi real estate market saw improvement in all sectors in 2022 shortage in supply and delayed deliveries, Invest-Gate reports.

Data by CBRE shows that the volume of residential transactions in Saudi Arabia fell by 24.5% YoY during 2022, reaching a net value of SAR 126.5 bn.

Volumes of transactions in Riyadh, Jeddah, and the Dammam Metropolitan Area dropped 33.9%, 16.2%, and 20.9%, respectively.

Average villa prices in Riyadh, Jeddah, and Dammam increased by 6.2%, 6.7%, and 17.4%, respectively, in 2022.

According to CBRE, Al Khobar was the only major city to record a decline in average villa prices over this period, with prices declining by 4.4%.

Over this period, average apartment prices declined across Jeddah, Dammam, and Khobar by 0.2%, 1.1%, and 4.4% respectively. 

The drop in prices could be ascribed to an increase in interest rates and development costs, CBRE says.