Dubai, UAE: In the first half of 2019 Saudi Arabian residential market prices appear to have remained under pressure while transaction volumes have picked up significantly across key cities, indicating that the market may be heading towards the bottom of its cycle.
With a growing urban population and a mismatch in the provision of housing stock to low and middle tier buyers, housing affordability in Saudi Arabia is a rising challenge.
However the Sakani scheme is put in place to tackle the rising affordability challenge and is driving substantial construction activity in the market. The scheme and the efforts to expand the mortgage market are expected to alleviate pressures in this area.
Despite challenging market conditions, various government initiatives aimed at boosting Saudi home ownership and government focus on the real estate sector as part of the economic diversification process is encouraging.
Raya Majdalani, Research Manager at Knight Frank said, “The residential market remains under pressure as the rising affordability challenge and the lack of suitable supply for middle and lower tier buyers continue to weigh on the sector. In H1 2019 we have seen as significant pick up in transaction volumes across key cities which indicates that the market may be heading towards the bottom of its cycle.”
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For further information, please contact:
Nicola Milton, Nicola.milton@me.knightfrank.com, +971 56 611 6368
Noor Chehayber, Noor.Chehayber@me.knightfrank.com, +971 54 448 8536
Knight Frank has a strong presence in the Middle East with offices in Abu Dhabi, Dubai and Saudi Arabia. The Group advises clients ranging from individual owners and buyers to major developers, investors and corporate tenants.
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank and together with its New York-based global alliance partner, Newmark Knight Frank, operate from over 523 offices, in 60 territories, and has over 18,000 employees. For further information about the Company, please visit www.knightfrank.com or www.knightfrank.ae
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