Saudi residential transaction volumes rise 6% in 12 months

Saudi residential transaction volumes rise 6% in 12 months

Riyadh | Saudi Arabia: The Saudi residential real estate market has experienced a 6% rise in the total value of residential transactions, albeit the number of deals has slipped, with the volume of home sales this year falling by 24%, according to Knight Frank.

Faisal Durrani, Partner Head of Middle East Research, explained: “The affordability gulf between buyer expectations and the significant house price increases registered in cities across the Kingdom is underpinning the slowing in the number of home sales. Transaction volumes however are still rising and are in fact 6% up compared to this time last year, highlighting the pace of house price growth being experienced around the Kingdom. Indeed, in Riyadh, average apartment values are up 30% in the last 12 months and this is even higher at around 40% for some of the most desirable suburbs in north Riyadh. Villa prices in the capital too have risen by 20%.

“Crucially, despite the enormous pipeline of around 200,000 new homes for the capital by 2030, price growth remains on a sharp upward trajectory. Our estimates suggests that Riyadh is expecting to face a deficit when factoring for the expected spike in population to 17 million by 2030, from 7.5