The volume of consumer loans for housing renovation and improvement during 2015 and 2016 amounted to about SAR123 billion and SAR129 billion, before it began to decline by the end of the fourth quarter of 2016 to SAR29 billion, according to SAMA data, which was accompanied by a decrease in maintenance supplies and rents for the residential sector.
Multiple loans
342 billion riyals
According to the data, the volume of consumer loans allocated to individuals from the banking system amounted to 342 billion riyals between 2010 and 2016, and according to the data, this variety of loans grew at a quarterly rate of approximately 3.2 percent during the twenty-eight quarters from the beginning of 2010 to the end of 2016.The Monetary Authority showed that the volume of consumer loans allocated to individuals from the banking system amounted to 342 billion riyals between 2010 and the end of 2016. The data revealed that the volume of these loans more than tripled in 6 years, rising from 12 billion riyals at the beginning of 2010 to 37 billion riyals by the end of 2015. This growth, especially in the last two years, is due to the decline in the prices of building materials and the decline in maintenance and installation costs associated with the construction sector.
Data revealed that the volume of these loans more than tripled in 6 years, rising from 12 billion riyals at the beginning of 2010 to 37 billion riyals by the end of 2015.
Rental and Maintenance Housing Decline
The General Authority for Statistics (GASTAT) reports that the index of housing supplies of rent, maintenance and services decreased by 0.7 percent in the first quarter of 2017, compared to the fourth quarter of 2016, and this decline included most of the figures related to the housing sector, such as housing maintenance, water and other services related to housing such as sanitation, cleaning and others.The latest release showed that the decline in the index of housing supplies of rent, maintenance and services decreased by 0.7 percent in the first quarter of 2017, compared to the fourth quarter of 2016, and this decline included most of the figures related to the housing sector. <The latest version of this index showed that the real estate price index of all types decreased by 2.3 percent between the first quarter of 2017 and the fourth quarter of 2016, and this decline had started since 2014 to reach 9.9 percent during the past year.This decrease in the general index of real estate prices for the first quarter of 2017 compared to the fourth quarter of 2016 is attributed to the decline in real estate prices in the commercial sector (1.8 percent), the residential sector (2.6 percent), and the agricultural sector (0.3 percent).
The decline in the general index of real estate prices for the first quarter of 2017 compared to the fourth quarter of 2016 is due to the decline in real estate prices in the commercial sector (1.8 percent).
Residential real estate prices fell At the residential sector level, the combined residential real estate price index recorded a decline of 9.5 percent over the past year and 2.This decline included all types of residential real estate, including lands, buildings, villas, apartments and public houses, but the most significant decline during the first quarter of 2017 compared to the fourth quarter of 2016 was recorded in the prices of apartments by 3 percent, followed by residential lands by 2.4 percent, while the decline in the prices of buildings, villas and public houses did not exceed 1 percent. Residential real estate prices in the first quarter of 2017 compared to the fourth quarter of 2016.
<Statistics of real estate transactions registered in the Ministry of Justice showed that the average price per square meter of residential land sold in the first quarter of 2017 amounted to 376 riyals, while the price per square meter of residential apartments reached 2328 riyals, and the prices of villas witnessed a significant decline in the first quarter of 2017, compared to their prices in the last quarter of 2016, where the average price per square meter moved from 1824 riyals to 1560 riyals, which is equivalent to a decrease of about 15.5 percent. These decreases come as a result of several regulatory measures issued by the government, through which it aimed to strengthen the state's financial balances, control government spending, and develop non-oil resources, in line with the objectives of Saudi Arabia's Vision 2030.
