Faisal Durrani, Partner and Head of MENA Research at Knight Frank, revealed that the number of real estate transactions in Saudi Arabia decreased by 16% year-on-year during the past year 2023.

Faisal Durrani revealed that the number of real estate transactions in Saudi Arabia decreased by 16% year-on-year during the past year 2023. Durrani attributed the decline to the increase in house prices, with apartment prices rising by 60% in Riyadh over the last three years and 20% in Jeddah over the same period.

Durrani attributed the decline to the increase in house prices.

Stable house prices in Riyadh

According to Al Arabiya, Durrani said that the fact that incomes did not rise at the same rate contributed to the slowdown, and we also witnessed a significant rise in the cost of borrowing, as he expected house prices in Riyadh to stabilize in the next 12 months instead of rising.

Durrani said, according to Al Arabiya.

In addition to these financial challenges reducing the level of residential activity, there is a change in the dynamics of the residential market, as 60% of the Saudi population is under 30 years old, and many young Saudis are moving around the country in search of better job opportunities and when they arrive in a new city they focus on renting rather than buying, which is also contributing to the slowdown in the level of activityreal estate deals.

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Real Estate Transactions.

7 % rise in Riyadh real estate transactions in 2023

Although the number of real estate transactions declined over the past year, Faisal Durrani emphasized that Riyadh was somewhat of an exception, as last year saw a 7% increase in the number of transactions in Riyadh, as it is a key focal point in the economic transformation, noting that Riyadh is where the bulk of new jobs are created and where expats are moving to.

Faisal Durrani said that the city's real estate transactions increased by 7% in 2023. Faisal Durrani explained that the real estate market in Saudi Arabia is going through a very normal cyclical behavior for any real estate market, where after record high prices in Riyadh began to stabilize.

Faisal Durrani stressed that the real estate market in Saudi Arabia is going through a very normal cyclical behavior. Durrani stressed the importance of finding new sources of demand for residential real estate to keep the market thriving, and one of these sources is looking at international buyers, so we are waiting for changes in foreign ownership laws.

Faisal Durrani said that the real estate market in Saudi Arabia is going through a very normal cyclical behavior for any real estate market.