MOSCOW: The value of real estate deals in the first three months of the Hijri year 1443, grew by 1.9 percent over the same pre-pandemic period in 1441.
The total value of real estate transactions hit SR48.2 billion in the quarter ending on Nov. 5, compared to SR43.2 billion and SR47.3 billion in the first quarter of 1442 and 1441, respectively, according to Ministry of Justice data.
Growth in 1443 was driven mainly by the commercial sector which grew by almost 80 percent to SR15.2 billion, compared to the same period in 1441, as well as four-fold growth in agricultural property transactions, which reached SR4.1 billion in 1443.
The residential sector was worth SR29 billion, 23 percent lower than 1441, but similar to 1442. Commercial property space surged by 300 percent to 48.5 million sq m in 1443, from two years ago.
However, the average value of one square meter of space fell 56 percent to SR315 in 1443 from two years ago.
There were 9,000 commercial properties involved in deals in the first quarter of 1443, 760 fewer than the comparable period for 1441. This suggests the implied average value of a commercial property almost doubled to SR1.8 million in the first three months of 1443.
For the residential properties including land, which accounts for the bulk of deals by value, the total space number fell by 26 percent, while the average value of one square meter of space lifted marginally, to SR660 this year from SR634 in 1441.
The number of residential properties transacted fell to just under 50,000 in 1443, from 83,500 in 1441. This implies an increase in the average value of a residential property lifted by almost 30 percent to SR580,000 from 1441.
Total space for residential apartments came in at 470,000 square meters over the first three months of 1443. This compares with 1,056,043 square meter over the same period in 1441.
This indicates an implied average value of one square meter fell 6 percent this year to SR2,274, from 1441.
At the same time, the number of apartments fell noticeably to just 2,016 units this year from 4,842 units in 1441. The implied average value of a residential apartment increased to SR530,000 from SR525,000, from the first quarter of 1441.
Property consultant Knight Frank said: “Home ownership has actually become more affordable since the launch of the National Transformational Plan. Two-bedroom apartments for instance, on average, cost 2.4 times annual incomes, compared to a multiplier of 2.7 back in 2016.”
