<JLL Real Estate Investments and Consulting revealed that the real estate market in Riyadh is witnessing a slight decline as a result of the implementation of a number of economic reforms with the National Transformation Program (NTP).

The performance of the real estate market sector

This came in its report on the performance of the real estate market sector in Riyadh during the first quarter of 2017 under the title “A look at the real estate market in Riyadh”.

JLL added that traditionally, most government institutions and entities have owned their own headquarters and buildings, and these institutions only rent small spaces in private buildings in Riyadh; however, the situation is now changing, and some other institutions and entities are considering renting spaces in private buildings.

JLL added.

Positive impact on real estate

<JLL Real Estate Investments and Consulting continued: This is turning into a trend that will have a positive impact on the market in the future, although this demand is insufficient to balance the impact of increasing the vacancy rate resulting from the decrease in the number of employees and workers in the government and private sectors.

JLL Real Estate Investments and Consulting continued. In the residential sector, there is an increase in the application of public-private partnerships to address the shortage of affordable housing units in Riyadh, as the Ministry of Housing has recently signed a number of memorandums of understanding with the private sector.

Development of housing projects

<The head of JLL's Saudi Arabia office said: “The signing of these MoUs indicates that the government and private sectors are expected to work together to organize the development of residential projects, which will reduce construction time and costs.”

JLL's head of Saudi Arabia said.

Jamil Ghaznavi added: “The launch of Sharq Gate, a large residential project with more than 7,000 housing units in eastern Riyadh, is the first project implemented under a partnership between the Ministry of Housing and the private sector; more such agreements are expected throughout the year.”

Ghaznavi added.

Real estate prices fall 9.9%

A statement by the General Authority for Statistics (GAS) last week showed that the real estate price index fell by 9.9% during the first quarter of 2017, compared to the same quarter of 2016.

The GAS data showed that the real estate price index fell by 9.9% during the first quarter of 2017, compared to the same quarter of 2016. In its statement, the authority attributed the decline to changes in the constituent sectors of the index, represented by a decrease in the residential sector by 9.5%, the commercial sector by 11.7%, and the agricultural sector by 1.3%.

The authority explained in its statement that the real estate price index decreased by 9.9% during the first quarter of 2017 compared to the same quarter of 2016. The real estate price index for the first quarter of 2017 decreased by 2.3% compared to the fourth quarter of 2016, attributing this to changes in the constituent sectors of the index.

She explained that the real estate price index for the first quarter of 2017 decreased by 2.3% compared to the fourth quarter of 2016. <It added that the residential sector declined by 2.6%, the commercial sector by 1.8% and the agricultural sector by 0.3%. Housing Minister Majid Al-Hogail said that prices are now closer to the citizen's income, as land prices decreased by 9 % and the prices of villas and apartments decreased by 8 %.

Minister of Housing Majid Al-Hogail said that prices are now closer to the citizen's income, as land prices decreased by 9 %.

Supply matches demand

In press statements on the sidelines of Restatex Riyadh 2017, Housing Minister Majid Al-Hogail confirmed that land prices range from 250 to 700 thousand riyals, and supply has become commensurate with demand due to projects in partnership with the private sector, which contributes to providing units at good prices.

Housing Minister Majid Al-Hogail said in press statements on the sidelines of Restatex Riyadh 2017 that land prices range from 250 to 700 thousand riyals. In remarks on the sidelines of the launch of Restatex Riyadh 2017, he explained that the ministry is still at the beginning of the way to solve the housing issue. He revealed that the General Authority for Statistics issued a report today on the performance of the real estate sector during the first quarter of 2017 compared to the same period of 2016.