The past weeks have been filled with accelerated and strong steps in the positive direction to correct the path of the real estate market, steps that started gradually and slowly, because correcting the path does not start quickly, as some people imagine.
According to the statement of the Minister of Housing on the sidelines of the Restatex Riyadh events held last week. According to the statement of the Minister of Housing on the sidelines of the Riyadh Restatex event held last week, he indicated that land prices decreased by 9 % and the prices of villas and apartments decreased by 8 %.
In other words, the prices of real estate have become more stable and strong.
In other words, prices have become between 250 to 700 thousand riyals, and the supply has become commensurate with demand due to the projects that are carried out in partnership with the private sector, and this in turn contributes to providing units at good prices, according to the Minister of Housing.
In the same context, the General Authority for Statistics did not go far from that, as it revealed in a statement that the real estate price index decreased by 9.9% during the first quarter of 2017, compared to the same quarter of 2016. It attributed this decline to changes in the constituent sectors of the index, represented by a decrease in the residential sector by 9.5%, and commercial by 11.7%.
But despite this, prices have not yet approached the citizen's income except in certain areas in Riyadh, and it takes time to create housing.“ I pointed out in my previous article that the start of the gradual decline in land prices and residential units (apartments and villas) is logical and expected, because it came as a reaction of the real estate market to be directly affected by the issuance of white land fees bills in both the Riyadh and Jeddah regions.
These major shifts in the real estate market are in the interest of low-income people.If we aspire to more decreases, because a decrease of 8 to 9% does not represent the ambition of many, our ambition ceiling is greater than that, given that the wave of rising real estate and residential land prices and inflation has been very large during the past fifteen years, which made many citizens consider that the mere thought of buying a piece of land or a housing unit is a blow to the real estate market. This situation has completely paralyzed the movement of many in moving towards the purchase of residential real estate, and the offerings have become like a ”masterpiece“ such as those displayed in one of the archaeological or heritage museums with the words ”Do not approach and touch" as if it were for display and viewing only.. With the start of serious steps, the coming, God willing, is promising.
