A news report issued by the Saudi Al Iqtisadi newspaper said that the domestic real estate market has witnessed a significant surge in residential land sales during the last two weeks. The cumulative area of displayed land plots in the market exceeded 96 million square meters.
The new transactions left a remarkable impact on the property market. Lands average price plummeted by the end of last week by 10.6 percent which is equivalent to 414,6 riyals compared to the same period of last year, according to the newspaper.
In the same respect, the report expected the local real estate market to flourish in the near future as land selling activity would hike as a result of enacting the undeveloped land tax.
Selling option is considered the easiest exiting way for land holders in the light of current market trend. Real estate development is also another option but it’s not really viable for many owners since it will take a long time, at least one year, which will expose investors to many risks including depreciation and low-profit margin.