Dubai: Riyadh experiences a rise in real estate transactions due to strong population and employment growth, leading to a shortage of available properties.
According to a recent report by real estate consultancy CBRE, an increase in transactions was also reported in Jeddah and Dammam over the past year.
As part of Vision 2030, Saudi authorities aim to raise the national homeownership rate to 70 per cent. A recent estimate from Sico Bank's research team indicated that homeownership among Saudi citizens currently stands at a robust 62 to 65 per cent.
The CBRE report highlights that residential transactions in Riyadh soared nearly 52 per cent in the second quarter of 2024 compared to the previous year.
Jeddah saw a 43 per cent increase in sales, despite stagnant prices over the past couple of years, while Dammam experienced a rise of just over 22 per cent.
In Riyadh, apartment prices have climbed almost 12 per cent annually for four consecutive years, with villa prices also trending upward, though at a slower pace.
The prime residential market in Riyadh has tightened significantly, making it challenging for even affluent expatriates to find suitable housing. Contributing factors include a lack of high-quality, modern properties and limited mortgage options, which have led some buyers to adopt a wait-and-see approach.
Saudi authorities have successfully increased real estate financing through local banks, according to CBRE. After a few sluggish years marked by high interest rates, mortgage activity has been on the rise in 2024, with new home loans increasing by 18 per cent and 14 per cent in March and April, respectively, compared to the previous year.
Saudi Arabia has partnered with major American investment firms like BlackRock and King Street Capital to enhance its secondary mortgage market and improve liquidity in the housing sector.
