Strong population and employment growth in Riyadh contribute to an increase in real estate transactions and a scarcity of available properties.
A recent report from real estate consulting firm CBRE states that during the previous year, there was an increase in transactions in Jeddah and Dammam as well.
The Saudi government wants to increase the percentage of homeowners in the country to 70% as part of Vision 2030. According to a recent estimate from the research team at Sico Bank, 62 to 65 percent of Saudi nationals are currently homeowners.
According to the CBRE report, Riyadh’s residential transactions increased by almost 52% in the second quarter of 2024 when compared to the same period the year before.
Despite prices remaining unchanged for the previous few years, Jeddah saw a 43% increase in sales, while Dammam saw a little over 22% increase.
For the past four years, Riyadh has seen an increase in apartment prices of nearly 12 percent per year; villa prices have increased as well, albeit more slowly.
Even wealthy expatriates are finding it difficult to find acceptable housing in Riyadh due to the tightening prime residential market. A dearth of well-built, contemporary homes and the scarcity of available mortgage options are contributing factors, prompting some buyers to take a wait-and-see stance.
According to CBRE, Saudi authorities have successfully expanded real estate financing through regional banks. Mortgage activity has been increasing in 2024, following a few slow years characterized by high interest rates. In March and April of this year, new home loans increased by 18% and 14%, respectively, over the prior year.
Saudi Arabia has bolstered its secondary mortgage market and increased housing sector liquidity by collaborating with prominent American investment firms such as BlackRock and King Street Capital.
