Saudi Residential Market Trends: Riyadh’s Resilience despite General Decline in 2023
2 min
The Saudi Arabia’s residential real estate transactions, representing 58.7% of the total real estate transaction value, witnessed a 16% decrease, falling to just below 150,000 sales from January to November 2023.
Throughout 2023, the total real estate transactions across all sectors in Saudi Arabia dropped by 17%, reaching slightly over 177,000, with the aggregate deal value decreasing by 9% to SAR 197.7 billion.
The issuance of mortgages during January-November 2023 saw a 35% reduction, a sharper decline compared to the 22% decrease during the same timeframe in the previous year. Additionally, the total mortgage value dropped by 36% to SAR74.2 billion, as elevated interest rates and prices led potential buyers to delay purchases in favor of saving larger down payments.
Contrarily, Riyadh, the capital of Saudi Arabia, displayed resilience against the downturn.
Riyadh saw an ascending trend in home values, with apartment prices increasing by 4.5% and villa prices by 0.5% compared to the previous year. The city also experienced a 7% increase in transaction volumes, totally contrasting with a 21% decrease in Jeddah and a 12% fall in the Dammam Metropolitan Area.
The price significantly grew in the residential market over recent years, especially in Riyadh, which has led to increased affordability challenges, worsened by rising borrowing costs. Interest rates escalated from approximately 0.8% in January 2021 to 6% by the end of the year.
Experts noted a shift in demand dynamics, with younger Saudis postponing homeownership due to affordability and a preference among intra-Saudi migrants for renting over buying, presenting a significant opportunity for introducing build-to-rent properties managed to international standards.
Analysis also pointed to a decline in Jeddah’s residential market transactions, with a 21% decrease from the previous year, and a 26% reduction in transaction value, ending 2023 at SAR20.9 billion.
Jeddah’s rising interest rates are the primary cause for the dip in transactions, affecting transaction values kingdom-wide. However, the government’s focus on revitalizing Jeddah’s demand through significant real estate and infrastructure projects promises potential upliftment in job creation and housing demand in the foreseeable future.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
This collaboration will extend into the fourth phase of Azizi’s Riviera project in MBR City, with Cummins supplying top-tier power generators.
2 min
Azizi Developments, a prominent private developer in the UAE, and Cummins Inc., a global leader in power solutions design, manufacturing, distribution, and supply, are extending their partnership into the fourth phase of the large-scale Riviera project. Cummins, known for its diverse range of products including diesel, natural gas, electric, and hybrid powertrains, as well as powertrain-related components, like filtration, after-treatment, turbochargers, fuel systems, control systems, air handling systems, automated transmissions, electric power generation systems, batteries, hydrogen generation, and fuel cell products. The manufacturer is globally renowned for its excellence in both innovation and sustainability.
Mr. Farhad Azizi, CEO of Azizi Developments, said: “As we continue our collaboration with Cummins Inc. for the fourth phase of our flagship project, Riviera, we reaffirm our commitment to procuring and utilizing only the highest quality materials. This partnership highlights our dedication to providing exceptional lifestyles for our investors and end-users through the careful selection of premium components. We are confident that our now-broadened alliance with Cummins Inc. will help in maintaining the high standards established for Riviera and further elevate the benchmarks of quality and excellence.”
Riviera is part of Azizi Developments’ award-winning portfolio. It is a stylish waterfront lifestyle destination that comprises 75 mid- and high-rise buildings with approximately 16,000 residences.
Designed to introduce the French-Mediterranean lifestyle to Dubai, which is not merely about architectural art, but also about a certain ‘joie de vivre’ — a celebration of life, an exultation of spirit, Riviera represents a new landmark destination that is both residential and commercial, with an abundance of retail space. Riviera features three districts: an extensive retail boulevard, a lagoon walk on the shores of its 2.7 km-long swimmable crystal lagoon with artisan eateries and boutiques, and Les Jardins — a vast, lush-green social space.
With its strategic location near the upcoming Meydan One Mall and the Meydan Racecourse — home of the Dubai World Cup — as well as Dubai’s most noteworthy points of interest, Riviera represents one of Azizi Developments’ most coveted projects.
Azizi Developments’ Sales Gallery can be visited on the 13th floor of the Conrad Hotel on Sheikh Zayed Road.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
