The recession in the local real estate market is still hanging over the major cities of the Kingdom of Saudi Arabia, and in certain parts of it, "residential and commercial land schemes" have begun to show unprecedented activity! Where it began to witness very huge sales (exit) operations at the level of their values and areas, whose individual values exceeded the values of the entire real estate market transactions, and it is noteworthy that some of them are located in distinctive locations from the cities, except that all of these plans occupy their locations within the urban area of the cities.

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Exiting real estate

These shifts clearly indicate an increase in exits and the sale of residential and commercial land plans with such large areas, against the continued stagnation in the sales of real estate products of housing units of various types, this reflects very important indicators for the market parties, and the consumer community in general, and these indicators are summarized in the beginning of the strong impact of the real estate market by the decision to impose fees on white land within cities and governorates, so the start of the sale of land plans within cities with such large areas of them is the beginning of a period that will witness more sales of land plans

Selling to escape fees

The exit window from real estate began with the exit of large owners without being noticed by the rest of the market, after which price levels would soon fall dramatically, entering the real estate market into a long period of time "that may extend to ten years at least, representing the last phase of the current real estate cycle, and the first phase of the next real estate cycle" The dominant feature is the continuous decline in price levels, which is what is actually happening now in the local real estate market, which is preparing for the last phase of its current economic cycle "which extends from 2004 and ends in early 2021", which reached its price peak "the biggest price bubble" in mid-2014, which quickly began to decline at the beginning of the fourth quarter of 2014 and continues to date, which has been documented weekly in this economic report, based on official data published on the Ministry of Justice website.

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Plan Sales

Jeddah witnessed during the past week the sale of an entire commercial land plan in one of its distinctive neighborhoods (Al-Zahraa), the value of the transaction amounted to three billion riyals, with a plan area of about 245 thousand square meters "the average price per meter was 12.3 thousand riyals per square meter." The also witnessed the sale of three residential land schemes within the urban area of Jeddah, distributed in two of Jeddah's neighborhoods "Al-Ajawid and Al-Huda", whose combined areas reached 1.12 million square meters, with a total value of 5.It is noteworthy that these deals took place without any reference to them by the various media outlets, which used to celebrate such huge deals, which is surprising compared to the great media celebration of real estate auctions whose value does not exceed even 1.0 percent of the value of these huge real estate deals.