A number of real estate specialists mentioned that the real estate prices are expected to down in the coming 6 months due to the new properties financing legislation issued lately by the Saudi Arabian Monetary Fund (SAMA).
The new properties finance legislation include a condition entitling the housing loans benefactors to pay 30% of the loan value as a first payment. This condition will lead, according to many specialists, to decreasing the properties prices in all scales by 30%.
In the same context, Bandar El Sadoun, El Khalejeya Holding chairman, mentioned that the properties market witnessed an unpredicted weakness in individuals demand rate due to the new legislation, as individuals now represent 40% of buyers, will developers have 60%.
Bandar demanded SAMA to review their recent legislation, saying that the new condition entitling benefactors to pay 30% as first payment will result in individuals’ reluctance from purchasing, and could to a temporary market stagnation in a small period.