The total value of transactions declined by 37.3% in Q1-18 to $21.5 billion compared to $34.2 billion in Q4-17, according to the estimates of KAMCO Research.
The research firm said in a report issued on Tuesday that the number of transactions in the region fell by 11.3% over the same period to reach 126,854 transactions.
The drop in the region’s transactions was mainly driven by Saudi Arabia, as transacted value fell by 50% quarter-on-quarter.
Meanwhile, transactions in Dubai fell by 28%, while Kuwait and Oman recorded growth.
Rents in most residential markets in the GCC continued to decline in Q1-18, however, office markets such as Dubai, Riyadh, and Kuwait have shown resilience within the region with single digit vacancy rates.
As for credit and financing, aggregate credit to the real estate sector disbursed by GCC banks in Q1-18 grew 3.2% to $193.2 billion.
Qatari banks were the largest contributors with $3.36 billion of incremental credit, followed by Saudi Arabian Banks with $1.47 billion.
Mortgages disbursed in Dubai declined by 21% to AED 30.7 billion in Q1-18, while the number of mortgages improved marginally by 1% over the same period.