The pace of decline in the local real estate market activity continued for the third consecutive week, as the market recorded a decline during the past week, reaching 18.1 percent, compared to a 13.7 percent decline in the previous week, to stabilize at the end of last week at below the level of 3.1 billion riyals. The performance of the real estate market during the last three weeks, performance indicators show that the real estate activity of the market has decreased by a record rate of 51.1 percent, losing more than 3.2 billion riyals during that period. The decline included all the main sectors of the real estate market, where the value of housing sector deals recorded a decline for the third consecutive week of 19.2 percent, compared to a decrease during the previous week by 2.3 percent, to stabilize at the end of last week at below the level of 2.0 billion riyals (63.7 percent of the total The value of weekly deals in the real estate market), and the value of commercial sector deals recorded a decrease for the third consecutive week of 6.5 percent, compared to a decrease during the previous week of 22.1 percent, to stabilize at the end of last week at the level of 0.9 billion riyals (29.4 percent of the total value of weekly deals Of the real estate market), and the total value of agricultural and industrial deals recorded a decline for the second consecutive week by a record 41.5 per cent, compared to a record decline during the previous week of 42.1 percent, and stabilized at the end of last week at 211 million riyals 6.9 per cent of the total value Weekly real estate market deals.
As for the other indicators of the weekly performance of the local real estate market, the number of real estate deals decreased for the third week in a row by 12.1 percent, compared to a decrease during the previous week by 4.3 percent. The number of deals in all major sectors of the market, with a decrease in the number of housing sector deals by 11.3%, a decrease in the number of commercial sector deals by 9.7%, and a decrease of 22.7% in the number of deals in the agricultural and industrial sectors.
The number of properties sold during the past week for the third consecutive week decreased by 13.9 percent, compared to a decrease during the previous week by 2.3 percent, to settle by the end of the week at below the level of six thousand properties sold, and the weekly decrease in the number of properties sold included all major sectors of the market, with a decrease The number of properties sold for the residential sector is 12.3%, the number of properties sold for the commercial sector decreased by 19.0%, and the number of properties sold for the agricultural and industrial sectors decreased by 22.2%.
As for the total area of real estate transactions executed during the past week, it recorded an increase of 37.5 percent, compared to a decrease in the previous week of 11.3 percent, to settle the total at the level of 58.4 million square meters, and the decrease in the areas of real estate transactions executed has focused on the residential sector, The area of executed deals recorded during the past week decreased by 22.7%, while the area of transactions executed for the commercial sector increased by 207.0%, and the area of transactions executed for the agricultural and industrial sectors increased by 38.4%
The changes in average market prices of residential real estate
The quarterly changes in the levels of the recorded market prices of various real estate assets in the residential sector (land, villas, and 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, and it seems that they were 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 decline of 6.1 percent, compared to its increase during the first quarter of 2020 by 2.5 percent. It rose by 11.1 percent during 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 1.5 percent.
While the average price of a residential unit of villa type during the fourth quarter to date recorded an annual increase of 8.5 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 11.6 percent. Finally, the average price of an apartment-type apartment during the fourth quarter of this year recorded an annual decrease of 13.6 percent, compared to the same quarter of last year, and 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, And its decrease during the third quarter of 2020 by 10.6 percent, bringing the net increase in the average price of a residential unit of apartment type during the current year until the end of last week, 0.5 percent.
It should be noted at the end of this report that the difference that may occur in the performance of the previous indicators related to the past weeks is due to two main reasons. To handle any delays that may arise in documenting real estate market deals. The second reason: adding all real estate deals, which are executed during Friday and Saturday to the previous week's deals, which certainly leads to some limited changes in the weekly total, despite the small value and size of those deals, which are executed during the two days of the weekend.
