Data from the monthly real estate market bulletin issued by the General Real Estate Authority revealed a clear decline in the residential sector’s performance during May, compared to the previous month, following a notable surge in market activity recorded in April.
The data showed a decline in the number of residential land transactions to 9,720, representing a monthly decrease of 16% and an annual decrease of 34%. Duplex transactions also fell to 653, down 19% month-over-month and 24% year-over-year, while single-story home transactions totaled 672, down 25% month-over-month and 9% year-over-year.
Apartment transactions also fell to 3,864, a monthly decline of 27% and an annual decline of 43%, while villa transactions fell to 1,593, down 33% month-over-month and 19% year-over-year, reflecting a slowdown across various segments of the residential market.
Value real estate transactions
In terms of the value of real estate transactions, residential land recorded approximately 7.47 billion riyals, down 17% month-over-month and 36% year-over-year, while the value of duplex transactions reached approximately 718 million riyals, down 23% month-over-month and 27% year-over-year.
The value of single-story home transactions also fell to 603 million riyals, down 23% month-over-month and 9% year-over-year, while apartments recorded approximately 2.70 billion riyals, down 21% month-over-month and 45% year-over-year. Meanwhile, Villas recorded the largest decline, reaching 2.10 billion riyals—a decrease of 35% month-over-month and 76% year-over-year.
Average Transaction Sizes
Regarding average transaction sizes, the average land area rose to 540 square meters, marking a monthly increase of 1% despite a year-over-year decline of 1%, while the average duplex area decreased to 294 square meters, down 4% month-over-month and 5% year-over-year. The average floor area remained unchanged at 201 square meters, while the area of apartments to 157 square meters, down 3% month-over-month and year-over-year, while the average area of villas rose to 445 square meters, up 1% month-over-month and 11% year-over-year.
As for the average transaction value, the average value of land fell to approximately 574,000 riyals, a monthly decline of 4% and an annual decline of 10%, while the average value of duplexes fell to 1.11 million riyals, marking a monthly and annual decline of 3%. In contrast, the average value of single-story homes rose to 914,000 riyals, representing a monthly increase of 1% and an annual increase of 8%, while the average value of apartments fell to 658,000 riyals, a monthly decline of 1% and an annual decline of 9%, The average value of villas also fell to 1.35 million riyals, marking a monthly decline of 3% and a yearly decline of 24%.
This performance in May follows a strong April, which saw robust market activity, with residential land transactions rising to 11,608, marking a monthly increase of 50% despite a year-over-year decline of 12%, Apartment transactions also rose to 5,261, marking a monthly increase of 49% and a yearly increase of 8%, and villa transactions recorded significant growth, reaching 2,377 transactions, with a monthly increase of 86% and a yearly increase of 87%.
The value of transactions also rose in April, with the value of land reaching approximately 8.99 billion riyals, a monthly increase of 53% despite a year-over-year decline of 8%, and the value of villas rose to 3.26 billion riyals, representing a monthly increase of 68% and a yearly increase of 11%, while apartments recorded approximately 3.44 billion riyals, marking a monthly increase of 45% and a slight annual decline of 4%.
In terms of other indicators, the average land area in April fell to 536 square meters, marking a monthly decline of 3% and a yearly decline of 4%, while the average apartment size remained stable at 161 square meters, and the average villa size rose to 441 square meters, with a monthly and annual growth of 4%. The average value of land also rose to 599,000 riyals, marking a monthly increase of 3% despite a year-over-year decline of 5%, and the average value of apartments rose to 909,000 riyals, with a monthly growth of 1% and an annual growth of 7%, while the average value of villas fell to 1.40 million riyals, with a monthly decline of 4% and an annual decline of 30%.
