Last week, the local real estate market activity recorded a decline of 33.5 percent, compared to a rise in the previous week of 22.5 percent, to settle at the end of last week at a level below 4.2 billion riyals. The decline included both the residential and commercial sectors, while it recorded a record high for the agricultural and industrial sectors, as the value of housing sector deals decreased, to 12.2%, compared to a rise during the previous week of 4.9%, to stabilize at the end of last week at below the level of 2.4 billion SAR (56.4 percent of the total value of weekly real estate market deals). The value of commercial sector deals recorded a record decrease of 63.3 percent, compared to a rise in the previous week of 42.1 percent, to stabilize at the end of last week at the level of 1.2 billion riyals (29.2 percent). Of the total value of weekly real estate market deals), while the total value of agricultural and industrial deals reached a record high of 120.6 percent, compared to a 17.8 percent rise in the previous week, and stabilized at the end of last week at 604 million riyals 14.4 percent of the total the value of weekly real estate deals.
As for the other indicators of the weekly performance of the local real estate market, the number of real estate deals decreased by 15.0 percent, compared to its increase during the previous week by 5.3 percent, so that the number of deals settled by the end of the week at the level of 6.5 thousand real estate deals, and the weekly decrease in the number of deals included all major sectors of the market With a decrease in the number of housing sector deals by 16.4 percent, a decrease in the number of commercial sector deals by 10.0 percent, and a decrease in the number of agricultural and industrial sector deals by 4.6 percent.
The number of properties sold during the past week decreased by 15.7 percent, compared to its increase during the previous week by 6.4 percent, to settle by the end of the week at the level of 6.7 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 residential sector by 17.0 The number of properties sold to the commercial sector decreased by 12.2 percent, and the number of real estates sold to the agricultural and industrial sectors decreased by 4.1 percent.
The total area of transactions also recorded real estate executed a record low during last week's rate reached 23.1 percent, compared to a height during the previous week of 20.9 percent, to settle the total at 47.6 million square meters, and included a decline in the areas of transactions real estate implemented all the major sectors of the market, down The area of executed deals for the residential sector was 26.4 percent, the area of executed deals for the commercial sector decreased by 48.1 percent, and the area of transactions executed for the agricultural and industrial sectors decreased by 18.5 percent.
Changes in average market prices of residential real estate
The quarterly changes in the recorded market price levels of various real estate assets in the residential sector (land, villas, apartments), during the time periods that passed this year, showed annual growth at their quarterly levels during the first and second quarters of this year, while it showed a path. Inversely, during the third and fourth quarters, it seems that it was significantly affected by the rise in the basic value-added tax, which took effect throughout the third quarter, and later on the real estate disposal tax, which began to be applied from the end of the third quarter.
According to the latest data issued by the Ministry of Justice, the average price per square meter of residential land during the fourth quarter to the date of this year, compared to its level during the same quarter of last year, recorded an annual decrease of 5.7 percent, compared to its increase during the first quarter of 2020 by 2.5 percent. It increased by 11.1 percent in the second quarter of 2020, then decreased during the third quarter by 3.6 percent, bringing the net increase in the average price of a square meter for residential land during the current year until the end of last week to 1.8 percent.
While the average price of a residential unit of villa type during the fourth quarter to date recorded an annual increase of 11.2 percent for the fifth consecutive quarter, compared to the same quarter of last year, and compared to its rise during the first quarter of 2020 by 13.6 percent, and its increase during the second quarter of 2020 by 22.4 percent. Percent, and an increase in the third quarter of 2020 by 3.0 percent, bringing the net increase in the average price of a residential unit of villa type during the current year until the end of last week to 11.8 percent. Finally, the average price of a residential unit of the type of apartment during the third quarter of this year recorded an annual decrease of 10.6 percent, compared to the same quarter of last year, compared to its rise during the first quarter of 2020 by 6.7 percent, and its increase during the second quarter of 2020 by 5.8 percent, The net increase in the average price of the apartment-type housing unit during the first three quarters of this year reached 1.0 percent, and to about 0.4 percent by adding the local real estate market transactions until the end of last week.
On the other hand, the latest statistics of the index of various countries in the world issued by the Bank for International Settlements (BIS) until the end of the second quarter of this year showed an increase in the price index of residential real estate worldwide at an annual rate of 1.9 percent, compared to its increase locally for the same period 1.8 percent According to the latest bulletin of the real estate price index issued by the General Authority for Statistics, while the residential real estate price index recorded at the end of the second quarter of this year, in each of the euro areas an increase of 4.8 percent, developed economies had a rise of 3.8 percent, and in emerging market economies Up 0.5 percent.
