The Saudi Arabian real estate market resumed activity after the Eid Al-Adha holiday, with a performance that did not exceed SAR 2.4 bn, coinciding with the beginning of July, Invest-Gate reports.
All the major sectors in the market were affected, as the value of residential sector deals remained stable at SAR 1 bn, representing 41.9% of the total weekly value of real estate deals.
The commercial sector was also affected by a decline in the value of deals to SAR 1.1 bn, representing 48.2% of the total weekly value of real estate deals.
The agricultural and industrial sectors also witnessed a decline in total deal value to SAR 234 mn, equivalent to 9.9% of the total weekly value of real estate deals.
The real estate market ended June with a year-on-year decrease in the total value of its monthly deals, which reached 33.3% with a value of SAR 18.3 bn. The annual decline rate for the residential sector’s deal value was 50.4%, reaching SAR 8.4 bn. However, the annual decline rate for the commercial sector’s deal value was only 5.4%, reaching SAR 8.2 bn.
Sales indicators were similar to the movement of value, as the total market sales recorded a 39.7% annual decrease. The residential and commercial sectors recorded the largest decline rates, with residential sector sales decreasing by 43.5% annually, and commercial sector sales dropping by 47% annually.
Regarding the quarterly performance, the total value of real estate deals during the second quarter of this year recorded a year-on-year decrease of 27.3%, equivalent to SAR 44.3 bn, remaining at the lowest quarterly level since the fourth quarter of 2020.
Moreover, the decline focused on the residential and commercial sectors, with the residential sector recording a 35.9% annual decrease in the value of its deals during the second quarter, reaching SAR 23.1 bn. Its sales volume also decreased at a greater pace, reaching 37.5%.
Meanwhile, the value of commercial sector real estate deals during the past quarter decreased by an annual rate of 20.1% to SAR 16.7 bn, and its sales volume also reduced by a higher annual rate of 37.5%.
