The Saudi Arabian real estate sales in the first seven months of the year 2018 have dropped by 33% to become around SAR81bn in comparison to the kingdom’s market performance during the same period of last year which achieved SAR122bn in properties’ sales.
According to the report issued by the Saudi Ministry of Justice, the reduction resounded the most through the commercial properties’ sector which has endured a 45% reduction in its sales to be SAR22.9bn in comparison to the sector’s sales during the same period in 2017 which were SAR42.2bn.
The sales of the residential sector, on the other hand, have decreased during the last 7 months by around 27% to be SAR58.3bn, in comparison to SAR80bn sales generated within the same period in 2017.
Overall, the performance of the Saudi real estate market in the first seven months of 2018 has suffered a significant downfall in comparison with the same period in the peak year of 2014 where the real estate sales of the first half of the current year were around SAR273bn, which shows a 70% reduction in the sales between 2014 and now that caused a reduction of SAR192bn in sales between then and now.
This can be attributed to many reasons including the downfall in oil prices and its effect on the purchasing power of the Saudi Arabian people as well as the Saudization policies which aim at reducing the number of working expats in the kingdom to generate more job opportunities for the Saudi nationals.