Sales prices of residential units in Riyadh and Jeddah, the biggest two cities in KSA, fell during the third quarter of 2015 as a result of the mortgage regulations issued last November according to JLL’s report.
JLL mentioned that villas and apartment’s sales prices fell for about 10% during the third quarter of this year.
The real estate services company attributed the price fall to the negative impact of the new mortgage regulations as citizens can’t afford the 30% down payment entitled by the new law for getting a mortgage.
On the other hand rents sector showed a totally different activity as rents continued to rise due to the rising demand for rental property.
Jamil Ghaznawi, head of JLL Saudi Arabia, said that Riyadh and Jeddah’s real estate markets maintained a steady performance and showed continued growth.
The report mentioned that about 4,000 units were completed in Jeddah and Riyadh during the third quarter to make the existing supply in Saudi real estate market 984,000 units.