The weekly activity of the local real estate market declined by a record rate during the past week, and the percentage of the decrease in the total value of its deals reached 28.8%, compared to its rise during the previous week of 18.0%, bringing the total value of market transactions by the end of last week to the level of 3.3 billion SAR, and the decline in the value of real estate market deals included all its main sectors, as the value of housing sector deals decreased by 26.8 percent, compared to a rise in the previous week of 14.3 percent, so that the value of sector deals settled at the end of last week at below the level of 2.3 billion riyals (67.4 percent Percent of the total value of weekly real estate market deals), and the value of commercial sector deals also decreased by 33.8 percent, compared to a 25.0 percent rise in the previous week. The value of weekly real estate deals), and the value of agricultural and industrial sector deals also recorded a weekly decrease of 27.8%, compared to a rise in the previous week of 28.5%. T. The value of the transactions of the two sectors at the end of last week at the level of 235 million riyals (7.0 percent of the total value of weekly deals of the real estate market).
As for the other indicators of the weekly performance of the local real estate market, the number of real estate deals recorded a weekly decrease of 22.5 percent, compared to a rise during the previous week of 11.2 percent, so that the number of deals by the end of the week settled at the level of 6.1 thousand real estate deals, and the weekly decrease in the number of deals included all major sectors For the market, the number of housing sector deals decreased by 22.5%, the number of commercial sector deals decreased by 25.2%, and finally, the number of agricultural and industrial sector deals decreased by 18.0%.
The number of properties sold during the past week decreased by 23.5 percent, compared to its increase during the previous week by 7.9 percent, to settle by the end of the week at a level below the level of 6.3 thousand properties sold, and the weekly decrease in the number of properties sold included all major sectors of the market, with a decrease in the number of properties sold to the sector Residential 23.4%, a decrease in the number of properties sold to the commercial sector by 27.5%, and a decrease in the number of properties sold to the agricultural and industrial sectors by 17.2%. As for the total area of real estate transactions executed during the past week, it recorded a weekly decline of 11.7 percent, compared to a slight increase of 2.6 percent during the previous week, to settle at 55.2 million square meters.
The performance of the local real estate market during January 2021
The local real estate market ended its activity during January with a slight annual increase in its activity, which reached 0.7 percent, compared to the same month of last year, to settle by the end of the month at the level of 15.7 billion riyals, compared to 15.6 billion riyals in January (January) last year. The annual growth of the real estate market activity during the past month was limited by the annual decline in the total value of the residential sector deals, as it recorded an annual decrease of 13.2%, compared to an annual increase for the same period of the total value of the commercial sector deals, at a record rate of 27.6%. In addition to the record annual growth in the total value of agricultural and industrial deals, which recorded during the same period of comparison an annual growth of 259.4%, they collectively contributed to the balance between the negative impact of the decline in the value of housing sector deals on the one hand, and on the other hand the positive effect of the increase in the total value Sector deals: commercial, agricultural and industrial.
Compared to the performance of the previous month in December, the local real estate market activity recorded a monthly decrease of 3.0%, which included both the commercial sector, by a monthly decrease of 13.7%, and the total of the agricultural and industrial sectors, by a monthly decrease of 16.0%, while the value of sector deals recorded Residential, a monthly increase of 3.6%. As for the reading of the rest of the monthly performance indicators of the real estate market, the number of real estate deals executed during last January recorded an annual decrease of 6.0 percent, to settle by the end of the month at the level of 28.0 thousand real estate deals, and the number of properties sold annually also decreased by 5.0 percent, To settle by the end of the month at the level of 29.4 thousand sold properties. While the area of real estate transactions recorded during the past month a record annual increase of 125.4 percent, to settle in turn at the end of the month at the level of 194.9 million square meters, its annual growth was derived from the record growth that occurred in the agricultural and industrial sectors by 198.9 percent, compared to an annual decline in the residential sector of 13.2 percent. Percent, and an annual decrease of 25.1 percent for the commercial sector.
Developments in mortgage loans to individuals
In the period during which new real estate loans granted to individuals recorded steady increases, they started remarkably since the beginning of 2019 and continued until the latest data issued at the end of last year by the Central Bank of Saudi Arabia, which recorded an annual growth by the end of December 2020, which reached 54.6 percent. , So that the total of new real estate loans granted to individuals from banks and financing institutions at the end of the month reached about 15.9 billion riyals (not including the amount of interest on financing) by the end of December 2020, and with it the number of individual borrowers during the same period increased by 74.3 percent, bringing their total numbers by the end of last December, more than 693.3 thousand individual borrowers.
These new real estate loans granted to individuals during the past year recorded a record growth of 76.8 percent, and their total balance during the period reached higher than the level of 140.7 billion riyals (not including the interest on financing), compared to 79.6 billion riyals (not including the interest amount) On financing (during 2019, and it is noted from a comparison of data during the period related to real estate loans granted to individuals issued by the Central Bank of Saudi Arabia on the one hand, and data related to the total value of housing sector deals issued by the Ministry of Justice on the other hand, that the total real estate loans to individuals amounted to 140.7 billion riyals) It does not include the interest on financing), the total value of housing sector deals, which amounted to 115.3 billion riyals, has exceeded during the same period.
