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
The Ultra-Luxury Development Offers Comfort, Privacy, and Personalized Service
< 1 min
UAE real estate developer, Palace Group, has unveiled its latest ultra-luxury residential project in the heart of Downtown Dubai. Situated on Dubai Gardens Main Road, next to Eden House, this new development promises comfort, privacy, luxury, and personalized service.
The project, designed by John McAslan + Partners, the award-winning architects behind the Nobu Residences, will feature 70 apartments and penthouses. Each residence will boast luxurious interiors, top-of-the-line fixtures, and high-quality fittings, with private balconies offering breathtaking views of Dubai’s skyline, ensuring a unique and personalized living experience.
Residents will have access to an array of upscale amenities focused on providing a luxurious lifestyle. Highlights include a spa, a high-end fitness facility, and a business center. Family-friendly amenities such as a kids’ club and play areas are also available.
Palace Group aims to support a resplendent urban lifestyle by offering a comprehensive array of services to meet the diverse needs of its residents, making it the ultimate sanctuary for executives and families alike. The project’s strategic location provides convenient access to major business hubs, world-class dining, shopping, and entertainment options, facilitating a perfect balance between work and leisure.
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
