Real estate index sales during the month of Safar of the current year, 1437 AH, reached approximately 24.1 billion riyals, compared to 29.6 billion riyals during Muharram of the current year, and 40.8 billion riyals during Safar of last year, representing a decrease of 22 percent and 40 percent, respectively.
Impact of Real Estate Market Correction
Transactions were distributed among the purchase of land plots, apartments, agricultural land, buildings, stores, houses, shopping centers, and rest stops; however, land plots accounted for the highest percentage, According to experts, these declines are due to a number of factors, perhaps the most important of which is the decline in inflation in the real estate sector and its entry into a correction phase, along with the state of uncertainty surrounding the sector, given the measures adopted by the government, such as imposing fees on undeveloped land and issuing new financing regulations alongside housing projects.
Residential Sector 65%
The real estate index issued by the Ministry of Justice showed that residential transactions dominated the total transaction value of 24.2 billion riyals, with residential transactions totaling 16.6 billion riyals—accounting for over 65 percent— and 7.5 billion riyals for commercial transactions, accounting for over 35 percent.
Mecca led in the number of residential units of all types with 841 units, followed by Riyadh with 717 residential units.
Mecca in the Lead
Three regions accounted for the majority of transactions: the Makkah region, first with a total of 8.6 billion riyals, compared to 9.7 billion during the previous month of Muharram; the Riyadh region, second with a total of 8.5 billion riyals, compared to 11.2 during the previous month of Muharram; and the Eastern Province, third with a total of 4.2 billion riyals, compared to 4.3 during the previous month of Muharram.
Riyadh Ranks First “Commercially”
In terms of commercial transaction value by region, the Riyadh region ranked first with a total of 3.2 billion riyals, followed by the Makkah region in second place with a total of 2.1 billion riyals, and the Eastern Province in third place with a total of 1.4 billion riyals, As for residential transaction value, the Makkah Region took the lead with 6.5 billion riyals, followed by the Riyadh Region with 3.2 billion riyals, and then the Eastern Province with 1.4 billion riyals.
