After the fall in mortgages .. “Al-Omari” reveals, in figures, a “different stage” in the face of the real estate market

Al-Marsad Journal: Economic analyst Abdul Hamid Al-Omari revealed tonight on Saturday a different stage in the real estate market at present, in light of the decline in mortgage lending.

Reduce mortgage loans for individuals

Al-Omari said in tweets on his Twitter account: “Home loans to individuals continued to decline for the fourth month in a row, dropping 60%; Recording a level even below its size when the economy shutdown (Covid-19). “

The economic analyst asked, “The market is after a massive wave of price hikes; What are you waiting for for the continued decline in loans and the start of the implementation of phase 2 of land royalties (Riyadh, Jeddah, Dammam) before the end of 2021?

Al-Omari added: “It is known that the prices of land and real estate products registered unprecedented rates of increase between 2019 and the middle of 2021, exceeding 100% in most cities and governorates (especially land), and in some areas prices have jumped by more than 200%. “

The reason for the rise in land prices

The economic analyst pointed out that “he was behind the rise: the increase in home loans, the delay in the rest of the stages of land costs, and now the real estate market is facing a 100% different stage”.

He added that the different phase “reduces the dynamics of real estate loans, and later the establishment of phase 2 of the royalty system will be announced, in addition to the start of work on the new housing code, adding to it the decrease in the volume of demand due to the fact that around one million citizens own their homes, offset by a considerable increase in the number of new homes.

Al-Omari concluded: “Who expects a further rise in prices after an unprecedented rise in the history of the real estate market (2019-June 2021) which has fluctuated between 100% to 200%, and in speculative sites, the rates have reached 500% -600% ”, stakes: What is the expected rate of increase in return for the decline in the dynamics of real estate loans, and the imminent implementation of phase 2 of the land tax system?