<Data from the platform documented the execution of a transaction at 11:12 pm at a price of 1,284 riyals per square meter for a 467 square meter plot of land, with a total value of 600 thousand riyals. However, the market witnessed another transaction just minutes later, at a price of 1,132 riyals per meter for an area of 398 square meters, with a final value that did not exceed 450 thousand riyals, indicating a rapid and direct decline in prices within a very narrow time frame.
<This rapid decline, which came after a period during which the market witnessed slight declines that did not exceed 15%, raised many questions about the reasons for this decline and its consequences. Observers believe that this decline cannot be separated from recent government decisions related to opening new areas of white land in northern Riyadh, as part of a plan aimed at increasing the real estate supply and facilitating citizens“ ownership of housing units at affordable prices. These decisions were considered one of the most prominent catalysts that pushed the market towards correction, especially in neighborhoods that were suffering from severe speculation and unjustified price hikes, such as in the ”Al-Khair“ neighborhood.
<Sector experts believe that the current correction is not circumstantial or of limited impact, but rather represents the beginning of broader structural shifts in the land market in the north of the capital. They point out that these shifts will lead to a realistic reassessment of land prices, especially in areas that have witnessed price inflation over the past months, opening the way to build a more balanced and transparent market, in line with the goals of Saudi Vision 2030, which puts the citizen at the heart of real estate development.
Sector experts believe that the current correction is not circumstantial and limited in its impact, but rather represents the beginning of broader structural shifts in the land market in the north of the capital. <In the midst of these developments, many investors have begun to reconsider their options and direct their compass towards new areas that are more connected to major development projects. Among these areas are ”Al-Azariya” and ”Al-Rimal“, which enjoy proximity to promising projects such as ”Sports Track” and ”Qiddiya Project", which are expected to provide better long-term growth and stability opportunities compared to areas that relied on speculation in their price rises only.
Analysts are likely to be more likely to invest in new areas that are more closely linked to major development projects. <Analysts expect this corrective trend to continue during the coming period, with a gradual tendency towards price stability and a relative decline in the impact of speculation on market movement. They believe that investors are more inclined to look for developed lands and approved plans that are in line with the state's orientation to raise the quality of life and provide real estate products that serve the citizen and contribute to the sustainability of the sector in the long term.
