Saudi Arabia’s residential transaction volumes fell 15.5% in Q3 due to stock concerns: CBRE

Saudi Arabia’s residential transaction volumes fell 15.5% in Q3 due to stock concerns: CBRE

RIYADH: Residential transaction volumes in Saudi Arabia fell 15.5 percent in the third quarter, compared to the same period last year, as lack of stock availability impacted activity levels in the Kingdom’s real estate sector, the latest market report by the global real estate adviser Commercial Real Estate Services revealed.

According to the report, the number of residential transactions in the Kingdom totaled 37,743, amounting to a total value of 25.6 billion in the third quarter, 0.8 percent less compared to the same period last year.

The report pointed out that the Dammam Metropolitan Area was the only region to record growth in residential transaction volumes with an increase of 12 percent in the year to the third quarter.

“Riyadh and Jeddah have maintained their downward trend in their total transaction volumes with their total diminishing by 31.1 percent and 19.3 percent respectively over the same period,” wrote CBRE in the report.

CBRE further noted that average apartment prices in the Kingdom increased by 7.8 percent in the 12 months to September, with prices in Riyadh, Jeddah, Dammam, and Khobar rising by 13.1 percent, 8.9 percent, 5.6 percent and 3.7 percent respectively.

According to the report, the majority of activity in the office sector remained