Residential properties register a 50% decrease in their prices this year

Saudi Arabia Residential Properties

The expert Iyad Abdulwahab Bafakih, a member of the Real Estate Committee in the Chamber of Commerce for Al Madina newspaper, said that the residential property prices in Saudi Arabia decreased markedly where the villas and buildings prices fell significantly to exceed 50% in the current year, while the land prices decreased by 45%.

It is worth mentioning that all the previous assumptions pointed to an increase in sales as a result of the high number of potential buyers, however what is happening to the Saudi real estate market now is more like a paralysis condition to the sector.

Bafakih also noted in his speech that many investors and financiers are now in big trouble since they build residential units and then sell them using the housing loan system, in addition that many of them have signed contracts with contracting companies which oblige them to make payments on a specific date and all this would inflict damage gradually to the real estate sector and its companies listed on the Saudi general index.

 

Source: sa.investing.com