The total value of real estate transactions during last week recorded a decrease of 5.7%, compared to its record decline during the previous week of 50.7%.

The total value of real estate transactions during the week stabilized at the end of the week at 3.1 billion riyals. The total value of transactions stabilized at the end of the week at the level of 3.1 billion riyals, and the largest impact of the decline in real estate activity during the past week came from the decline in commercial sector activity, which recorded a record decline for the second week in a row by 41.6 %, compared to its record decline during the previous week by 68.5 %.

The total value of real estate transactions during the past week contributed to a decrease of 5.71 TP3T, compared to its record decline during the previous week. On the other hand, the improvement in activity in the residential sector contributed to mitigating the real estate decline, as the value of transactions in the sector recorded a weekly increase of 14.31 TP3T, compared to its decline during the previous week by a record 351 TP3T.

On the other hand, the improvement in activity in the residential sector contributed to mitigating the real estate decline, as the value of transactions in the sector recorded a weekly increase of 14.31 TP3T. Over the past 4 months, the real estate sector stagnated due to the slowdown in the growth of real estate loans granted to individuals, which recorded a decline in the first eight months of this year compared to the same period last year by 16.3%.

Contributing to this situation was the steady rise in the interest rate on bank borrowing, which as of the end of last week reached 4.58 represented by the three-month SIBOR, the highest rate since November 2007 in 15 years.

The real estate sector saw a slowdown in the growth of real estate loans to individuals, which declined in the first eight months of this year compared to the same period last year by 16.3%.