Reports have predicted that The real estate market in the Kingdom has recovered in the residential sector, with the entry of 26,400 new housing units during the current year in both Riyadh and Jeddah, where about 8,000 units are scheduled to enter the Riyadh market and 6,000 units in Jeddah by the end of the year, while the two cities received about 12,400 new housing units in the third quarter.

The two cities received about 12,400 new housing units in the third quarter.

The total inventory of residential units reached 1.4 million units in Riyadh and 875,000 in Jeddah, the report said, adding that Riyadh's growing popularity as it seeks to become the regional business center in the region has increased demand for residential units, and the rise was reflected in sales and rental prices, which witnessed a remarkable growth of 7% and 3%, respectively, during the third quarter of 2023 compared to the same period last year. Apartments remain the most in-demand unit type, with year-on-year sales prices increasing by 9%, while rents increased by 6% year-on-year. For Jeddah, the residential market achieved similar results with average selling prices increasing by 7% during the third quarter of this year, while rents increased by 5% year-on-year.

<Noteworthy is the growth in apartment sales prices in Jeddah, where prices rose by 12%, while the price increase in Riyadh stalled at 9%. Apartment rents saw an annualized increase of 5% during the same period. He explained that the data for the period from January to August 2023 issued by the General Real Estate Authority, highlighted an annual decrease of 2% in the total volume of transactions in Riyadh, and an annual decrease of 25% in Jeddah compared to the same period last year.