Riyadh- The real estate market has started a new phase of changes in supply and demand levels as well as prices – the sector is now subject to supply and demand balances.
This has led to a 20 percent drop in prices during the first half of 2017, compared to the same period of 2016 according to local real estate indicators.
In this context, real estate specialists pinned high hopes on the housing system in Saudi Arabia to reinforce supply levels and reduce prices, therefore increase averages of citizens’ acquisition of possessions.
Further, the drop in lands’ deals led to the real estate sector loss of 19 percent of local deals the week before last.
These figures reflect the current changes in the Saudi real estate market, by which the local market is still incapable to assimilate the procedures and decisions taken during the past months – on top of them imposing taxes on white lands in the kingdom.
Engineer Muhammad Dahim stated that the Saudi real estate is currently ongoing a remarkable recession.
“Deals are less than the size hoped for, and this doesn’t encourage real estate investors to develop and invest. This is not healthy because the real estate sector is a vital sector on a world scope, and it drives other sectors,” Dahim added.
Yet, he stressed that this is a temporary stage that won’t last.
“Aggravation of lands’ prices and reaching illogical levels made us face a purchase power unable to go along with these prices,” Dahim continued.
Real estate marketer in Riyadh Yusuf al-Harbi expected that the housing system will result in reinforcing supply levels and lessening prices.
Saudi Arabia is keen to terminate the housing crisis file though a package of solutions and programs, while real estate personnel wish to have remarkable contributions in tackling this matter.