Saudi Arabian Real Estate Sector Stable in Q3

Saudi Arabian Real Estate Sector Stable in Q3

In the year to date to Q3 2020, transaction volumes decreased by 28% compared to the same period a year earlier, with the total value of residential transactions down 38% over the same period. Despite the decline in transaction volumes, residential sales prices have remained relatively resilient, stated Knight Frank in its Saudi Arabian Real Estate Market Review Q3 released today.

 

The global industry expert said the exemption of property from VAT and the introduction of a lower property tax will help end-users, developers and the government achieve its aims of increased levels of home-ownership and private participation in the real estate sector.

 

"More so, the decision by the government to bear the tax burden for properties up to SR1 million ($266,280) will ensure that affordability is not curtailed by this tax.