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The local real estate market saw a drop in the total value of its weekly transactions, ending last week with a 7.0% drop, compared with a 4.6% increase the previous week. Level of 3.5 billion riyals. Weekly change in the value of real estate transactions between the residential and commercial sectors, where the total value of transactions in the residential sector is identical to the one recorded the previous week, compared to an earlier decline of 1.2%, while the total value of transactions in the commercial sector decreased by 26.2% compared to 23.3% the previous week.
The weekly decline in the liquidity of the real estate market between the end of last month and the end of last week indicates that the real estate market is again quieted after more than three months of limited activity observed on the market since late October. 2018 and is maintained until the end of last month. With the limited increase in real estate financing levels granted to individuals, he has been affected by many long-term economic and social factors, which have the strongest and most continuous effect for the fifth year in a row as evidenced by the short-term effect of this increase in provision levels It began to disappear from market transactions during the month.
The market's long-term vision is to respond to critical structural reforms and to take into account other economic and financial factors that push the local real estate market away from widespread and pervasive distortions in order to comply with ongoing regulations and reforms. and expected, which would allow them to focus on promoting economic growth and stability rather than a mere market of speculation and the unjustified rise in market prices of various real estate assets, the negative effects of which have been proven economically and socially. Who pays more optimism in the local real estate market, because turned into a market that meets the requirements of the national economy, and improve its stability, relies more on the development, construction and the Use, contrary to what has been experienced in recent decades of monopoly and speculation.
On the other hand, local real estate investment funds (16 investment funds) continued to reduce their previous losses, registering an average weekly gain of 0.8% compared to the 0.8% increase recorded the previous week. , With an average loss of 17.6% at the end of last week (two funds only with a market price higher than the IPO price, against 14 real estate funds whose market prices are lower than the IPO price) and a net capital loss at the end of the year to 2.4 billion rupees, compared to its capital at the time of the offer. While the volume of banking facilities granted to these funds and Sukuk remains stable at LR 5.6 billion (40.7% of its capital, 49.5% of its market value) and the stabilization of the number of funds real estate or Sukuk borrowed in nine REITs out of 16 traded.
Weekly Real Estate Market Performance
The real estate market has returned to low levels in terms of transaction value, the total value of real estate transactions of 7.0% last week compared to an increase of 4.6% the previous week and stabilized the total value of real estate transactions at the end of the eighth week of this year to lower than the level of 3.5 billion riyals, compared to the previous level of 3.7 billion riyals.
The evolution of the value of real estate transactions between the residential and commercial sectors, where the total value of transactions in the residential sector has stabilized at the same level, compared to a previous decline of 1.2%, helped settle real estate transactions at the end of last week to 2.7 billion riyals. While the total value of transactions in the commercial sector decreased by 26.2%, compared with a rise of 23.3% the previous week, transactions in the commercial sector stabilized at the end of last week to 767 million of riyals.
For the rest of the weekly real estate market, the number of real estate transactions rose by 2.7%, compared with a weekly decline of 0.6% to settle at 6966. The number of properties sold increased by 3.8 %, compared to a previous weekly decline of 0.7%, to establish 7257 properties sold, reflecting the change in the reversal of the change in the value of transactions or the decrease in percentages. they are consistent in the same direction, It is a very positive thing that will promote its continuation (low prices, transactions and high sales) .The exit of the local real estate market of the serious recession to which it is subjected for several years, Housing for members of the community, under the aegis of a fall in the inflated prices of various real estate. Real estate transactions recorded a weekly increase of 14.5 percent, compared to a 25.3 percent drop the previous week, to 20.4 million square meters.
Trends in land and real estate prices
Short-term price trends, illustrated by changes in the average price of land and residential properties in the previous period, saw an annual decline in all average prices in the previous 12 months to the end of the year. end of February 21 of this year compared to the same period of the previous year, the results are as follows: annual decline of 12.2% of the average price of residential apartments and decrease of 10.7% of the average price residential market, while the average market price per square meter of residential land increased by 3.2% per year.
While long-term price trends have shown a decline in all average prices of real estate and residential properties at the end of February 21 of this year compared to the average annual market price of real estate and real estate in 2014 (the peak real estate), the results are as follows: 31.5%, the average market price per square meter of residential land during the comparison period decreased by 30.3% and the average price of apartments by 21.3%.
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