Property prices in Saudi Arabia's capital Riyadh rose at their fastest pace in at least five years, according to a new report.
Apartment prices rose by 20 per cent on average in the past 12 months while villa prices were up 18.6 per cent, property consultancy Knight Frank said.
However, deal numbers have declined 27 per cent in the past year as households find themselves needing to save for longer before being able to transition to home ownership.
Transaction volumes across the kingdom fell to 60,000 during the first quarter, although total deal values receded by only 2 per cent to 40.4 billion Saudi riyals ($10.8 billion), reflecting the significant price growth
“The spectacular house price growth in the kingdom mirrors what we are seeing around the world,” said Faisal Durrani, partner and head of Middle East research at Knight Frank.
“However, in Saudi Arabia, the government’s programmes to boost home ownership have turbo-charged demand, development activity and house prices.”
Despite receding levels of demand, vendors are either holding firm on prices, or turning to the rental market instead, further contributing to the dip in overall deal activity and exacerbating the shortage of homes available for sale, said Mr Durrani.
Prices in the Red Sea port city of Jeddah have also risen in the 12 months to the first-quarter of 2022, according to Knight Frank.
Apartment prices are up 4.9 per cent while villas are 1.2 per cent more expensive.
Business activity in the kingdom's non-oil private sector continued to improve in April, with the S&P Global Saudi Arabia Purchasing Managers’ Index hitting 55.7 in April, indicating a strong momentum in business conditions.
While lower than the kingdom's March PMI reading of 56.8, non-oil business activity remains in expansion territory.
Saudi Arabia is amending the laws to attract more foreign investment to its property sector, as the country’s economy continues to rebound and attract more workers from abroad, local media reported last month.
The proposed amendment to rules governing foreign ownership of real estate will also increase competition in the sector, Asharq Al Awsat newspaper reported.
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Dubai property prices: where they are rising and falling — April 2022
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VILLA PRICES: Palm Jumeirah: Dh3,055 per square foot — up 5 per cent a month in April. -
Emirates Hills: Dh2,059 per square foot — up 1.8 per cent a month. Photo: Knight Frank -
Jumeirah: Dh2,006 per square foot — up 3.7 per cent a month. Sarah Dea / The National -
District One: Dh1,825 per square foot — down 0.9 per cent a month. Satish Kumar / The National -
Mohammed bin Rashid City: Dh1,512 per square foot — up 0.7 per cent a month. -
Dubai Hills: Dh1,447 per square foot — up 1.5 per cent a month. Photo: Emaar Malls Management -
The Meadows: Dh1,440 per square foot — down 0.5 per cent a month. Jeffrey E Biteng / The National -
The Lakes: Dh1,422 per square foot — up 1.0 per cent a month. Pawan Singh / The National -
Jumeirah Islands: Dh1,454 per square foot — up 2.5 per cent a month. Photo: Prestige Dubai -
Jumeirah Golf Estates: Dh1,358 per square foot — up 4.6 per cent a month. Pawan Singh / The National -
The Springs and The Meadows: Dh1,146 per square foot — up 2.1 per cent a month. Photo: Better Homes -
Arabian Ranches: Dh1,195 per square foot — up 3.7 per cent a month. Pawan Singh / The National -
Meydan City: Dh1,157 per square foot — up 0.9 per cent a month. -
Al Barari: Dh1,145 per square foot — up 4.9 per cent a month. Photo: Luxhabitat -
Jumeirah Park: Dh1,099 per square foot — up 0.8 per cent a month. Pawan Singh / The National -
Victory Heights: Dh1,064 per square foot — down 2.2 per cent a month. Photo: Luxhabitat -
Mudon: Dh1,008 per square foot — up 2.7 per cent a month. Satish Kumar / The National -
Jumeirah Village Triangle: Dh959 per square foot — up 2.3 per cent a month. Pawan Singh / The National -
Sustainable City: Dh948 per square foot — up 0.6 per cent a month. Antonie Robertson / The National -
Town Square: Dh813 per square foot — up 1.4 per cent a month. Satish Kumar / The National -
Living Legends: Dh796 per square foot — up 1.2 per cent a month. Pawan Singh / The National -
Jumeirah Village Circle: Dh613 per square foot — up 1.3 per cent. Antonie Robertson / The National -
Falconcity of Wonders: Dh743 per square foot — up 1.6 per cent a month. Sarah Dea / The National -
Akoya Oxygen: Dh592 per square foot — up 1.3 per cent a month. Photo: Allsopp & Allsopp
