Saudi Residential Market Trends: Riyadh's Resilience despite General Decline in 2023 | Kanebridge News
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Saudi Residential Market Trends: Riyadh’s Resilience despite General Decline in 2023

Mon, Feb 19, 2024 3:55pmGrey Clock 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.



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Tonino Lamborghini Unveils New Luxury Residences in Ras Al Khaimah

Tonino Lamborghini recently revealed a new luxury project comprising 241 units in Ras Al Khaimah, developed in partnership with Arista Developments.

Tue, May 21, 2024 2 min

Named the Tonino Lamborghini Residences, this project promises a fresh take on luxury living with its iconic design, cutting-edge amenities, and stunning sea views.

Set on Al Marjan Island, the development is adding 241 high-end units to the area’s real estate offerings, all reflecting the sleek, Italian elegance associated with the Lamborghini name.

These residences are designed to impress, featuring modern architecture that harmonizes with the scenic surroundings and interiors marked by meticulous craftsmanship and top-quality finishes.

Living in this one of the project’s units means access to a range of upscale amenities: a state-of-the-art fitness center, multiple swimming pools, beautifully landscaped gardens, and dedicated areas for children’s play. The complex also offers a business center with a conference room, an outdoor BBQ area, and a chic café, catering to all aspects of high-end living.

Arch. Abdulla Al Abdouli, Chief Executive Officer, Marjan, expressed excitement about the introduction of Tonino Lamborghini Residences to Al Marjan Island, noting the project’s blend of sustainable construction and smart home technologies. This integration, he mentioned, guarantees a luxurious lifestyle equipped with the finest modern amenities, reflecting the exquisite Italian craftsmanship. He is confident that this new venture with Arista Developments will significantly boost the allure of Al Marjan Island as a top lifestyle destination in Ras Al Khaimah for both investors and residents.

Tonino Lamborghini, President of the Tonino Lamborghini brand, said: “We are delighted to be among the pioneers in this remarkable new destination in one of the seven emirates of the UAE. Our heartfelt gratitude and recognition go to H.H. Sheikh Saud bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah, for his visionary leadership and foresight, and for embracing innovative strategies to revitalize a region full of potential.”

Mr. Arthur Chu, Chairman of Arista Developments, highlighted the project’s ambition to capture the essence of the Tonino Lamborghini brand in every aspect of its design. He described the development of a prestigious residential tower on Al Marjan Island that will reflect the lifestyle and beauty synonymous with Lamborghini. From the sharp, well-defined lines of the exterior to the elegantly designed interior common areas, every detail is crafted to showcase the brand’s distinctive elegance and sophistication. Chu emphasized that the interior designs, personally crafted by Tonino Lamborghini, aim to fully immerse residents in the Italian brand’s luxurious identity.

The variety in housing options is vast, ranging from one and two-bedroom apartments to duplexes, sea view villas, signature villas, and exclusive penthouses.

The collaboration between Tonino Lamborghini and Arista Developments blends iconic Italian style with expert real estate craftsmanship. This venture marks Lamborghini’s first introduction to Ras Al Khaimah and represents a commitment to setting new standards in luxury and modern living.

 

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