Over the past few years, the number of real estate transactions across various regions of the Kingdom has seen fluctuations in statistics, followed at times by a slump and at other times by a slight increase in transactions, with the total number of real estate transactions executed over the past five years reaching approximately 1.3 billion real estate transactions with a total value exceeding 1,676 billion riyals. In the following report, we highlight the most significant developments during this period.
1.3 billion real estate transactions
According to the latest statistics, 1.3 billion real estate transactions with a total value exceeding 1,676 billion riyals were executed across all regions of the Kingdom over the past five years, with the residential sector accounting for the majority of transactions, recording 1.1 billion real estate transactions with a total value exceeding 1.094 trillion riyals, while the commercial sector recorded 185,534 real estate transactions with a total value exceeding 582 billion riyals.
According to the Ministry of Justice’s Real Estate Index, five major regions accounted for the largest share of transactions executed over the past five years, recording 1,091,259 executed real estate transactions. The number of transactions in 1433 AH was 144,810 various transactions, in 1434 AH 251,627 various transactions, and in 1435 AH 265,913 miscellaneous transactions, 239,678 miscellaneous transactions in 1436 AH, and 189,231 miscellaneous transactions in the top five regions last year, 1437 AH.
The residential sector
On the other hand, the residential sector across all regions of the Kingdom has accounted for 1,094 billion riyals over the past five years through transactions exceeding 1.1 billion diverse real estate deals, with the share of the land sector in all its forms exceeding 90 percent in most of the past years.
The Riyadh region topped the list with 611.642 billion riyals, followed by the Makkah region with 569.287 billion riyals, while the Eastern Province ranked third with 261.944 billion riyals, followed by the Medina region with a total value exceeding 113.925 billion riyals, and then the Qassim region with a total value of 55.298 billion riyals.
Wait and see
For his part, a real estate expert that those involved in the real estate sector in general should wait and see and not be swayed by the promotion of certain plot prices as a buying opportunity, emphasizing that they do not reflect market reality or the actual prices of properties currently on the market. Al-Ahmari noted that the real estate market is experiencing a significant slump in both sales and purchases, due to the countdown to the implementation of the decision to impose fees on undeveloped land and its impact on real estate prices that have been inflated for decades, especially since the Ministry of Housing has confirmed in numerous interviews that the goal of the fees is to revitalize the land.
He noted that the real estate market will undergo many changes following the implementation of the executive regulations for land fees on the ground, expecting that many real estate products will become affordable for those seeking suitable housing.
A noticeable slump in the real estate market
In turn, a real estate investor said: Anyone who has been following the real estate market recently can see that there is a noticeable slump due to anticipation of falling land prices as the implementation of the fees approaches, noting that demand for all types of land is currently almost at a standstill, both in terms of supply and demand, which is logical given the conditions in the region and fears regarding the implementation of the decision to impose fees in the coming period.
The real estate investor noted that the real estate market in the Kingdom is currently experiencing unprecedented conditions, including the implementation of land fees, the Ministry of Housing’s projects, and the regulation of real estate market operations and procedures in the coming period. He emphasized that market participants are apprehensive about the market situation and are unable to predict how the market will develop in the coming period.
