Several factors contributed to the rise in the value of real estate transactions completed during the month of Safar 1439 AH, which totaled 17.4 billion riyals—an increase of 5 % compared to the same period last year. Foremost among these is the noticeable decline in prices, which has stimulated market activity, as well as the renewed confidence in the sector following the successful real estate auctions of the estate of Sheikh Saleh bin Abdulaziz Al Rajhi, which were held recently.
Prices Have Hit Bottom
A number of real estate experts expressed their conviction that the time is now right and opportune to buy, given the improving economic performance, and that prices have hit bottom, This has been accompanied by a significant increase in sales and transactions in the residential sector, with Riyadh accounting for the largest share. The value of residential real estate transactions during the month of Safar reached 3.73 billion riyals, an increase of 42 % compared to the same month last year, followed by Makkah with 2.68 billion riyals, an increase of 56 %. The recovery in buying and selling activity in Riyadh serves as a positive driver and catalyst for the rest of the cities and regions.
Auctions Revitalized the Market
For their part, real estate professionals praised the Ministry of Housing’s policy of increasing the supply of housing units, noting that it has boosted purchasing power through lower prices and higher demand for housing, especially in Riyadh, These factors have contributed to improved sales, and they added that the real estate auctions of the estate of Sheikh Saleh bin Abdulaziz Al-Rajhi—may God have mercy on him—are influencing the current rise in real estate transactions, as they were held during the months of Safar or Rabi’ al-Awwal, He expects the coming period to see a rise in sales as a result of the moderate decline in real estate prices, which will enable many citizens to purchase at certain prices.
Positive Impact on Land Plot Sales
Data released by the Ministry of Justice showed that the increase in the value of real estate transactions reached 29%, the highest rate since 1437 AH.
Real estate transactions involving land plots (residential and commercial) accounted for the largest share during the month of Safar in the year 1439 AH, with a value of 15.4 billion riyals, accounting for approximately 89 % of the total value, followed by apartment transactions worth 796 million riyals.
Real estate transactions were divided between residential and commercial properties, with the value of residential transactions during the month of Safar 1439 AH reaching approximately 12.9 billion riyals, representing a 15 % increase compared to the same period of the previous year, while the value of commercial transactions reached approximately 4.5 billion riyals during the month of Safar 1439 AH, marking a decline of 16 % compared to the same period last year.
The value of real estate transactions had recorded a 14 % decline since the beginning of 1439 AH, equivalent to 5.2 billion riyals, compared to the same period in 1438 AH, reaching 32.2 billion riyals.
