The real estate consultancy JLL has mentioned in its Q1 Riyadh Real Estate Overview report that the sales prices in the Kingdom capital bottomed out for the first time since adapting the mortgage regulations last year.
Saudi real estate market, according to the statement, witnessed varied performance. Hotel and residential sectors experienced a slowdown while office and retail sectors witnessed a lenient growth.
Data from the Ministry of Justice and JLL report assured that residential transactions decreased by 6 percent over the quarter while sales prices for residential units, either villas or apartments, remained stable since the last quarter, however, year-on-year results indicate a drop by 4% for apartments and 6% for villas.
The Saudi Arabian Monetary Fund (SAMA) has decided increasing the loan-to-value ratio of mortgages from 70 percent to 85 percent for real estate companies.
JLL implied in its report that this decision should energise the sales activity in the market by making houses more affordable for Saudi citizens.