The number of real estate transactions in the Kingdom during the past week amounted to 2761 real estate transactions, recording a decrease of 38.3%, which is an extension of its decrease in the previous week by 1.8%, and the number of properties sold during the week decreased by 27.9 %, to settle at 3393 properties sold, compared to its decrease during the previous week by 1.6%.
The decline in transaction values included both residential and commercial sector transaction values, where the value of residential sector transactions decreased by 18.3 %, compared to its increase during the previous week by 2.6 %, to settle by the end of the week below the level of 453 million dollars, and the value of commercial sector transactions decreased by 31.0 %, compared to its record high during the previous week by 82.5 %, to settle at the end of the week below the level of 160 million dollars.
The successive decline was affected by direct pressure from government decisions that began to reshape the sector, especially after the actual start of the payment of land fees and the adoption of VAT, and the diversity of ownership options through the government's entry into this through the “Residential” program, which is achieving great success, in addition to the price disparity between the supply of investors and the ability of buyers.
The reasons for the successive decline varied. The reasons for the decrease in the total number of transactions in the commercial sector specifically varied, due to the repercussions of land fees and their pressure on the value of real estate investments in general, in addition to the fear of investors from taking the risk of buying at this time in light of the great pressures in the market; the most important of which are the fees, which remain the most influential according to the sequence of the decline rate since their adoption, and apprehension about the future of real estate, which is a great concern for those interested in it, and it is expected that the diminished demand will reflect positively on prices by reducing them to levels consistent with the capabilities of buyers.
With the decline in the number of transactions in the commercial sector in particular. Looking at the liquidity of the local real estate market, the trend of the average weekly performance of the market at the level of its managed liquidity since the beginning of this year shows a decline to the level of $ 746 million, 39.8 % below last year's weekly average.
The average price of a home in the UAE declined to $ 746 million, lower than last year's weekly average by 39.8 %. The average price of residential apartments decreased by 7.8 %, the average market price of residential villas decreased by 7.3 %, the average market price per square meter of residential land decreased by 6.5 %, and finally the average market price of residential buildings for the same period decreased by 5.2 %.
The average market price of residential buildings for the same period decreased by 5.2 %.
