Real Estate Prices Surge by 45% as Transactions Decrease: Weekly Market Overview

September 29, 2024, 20:21 | Last updated: September 30, 2024, 16:50

Real estate prices in the Kingdom saw a notable increase of 45% last week, accompanied by a decline in the number of transactions. According to Akhbar 24‘s weekly monitoring of real estate stock exchange data, a total of 5,837 real estate deals were finalized during the week ending on Saturday, September 29, 2024.

The average price per square meter rose sharply to 306 riyals, a significant jump from 211 riyals per square meter in the previous week. The highest recorded price for a single property reached an astonishing 23,400 riyals per square meter, reflecting a robust demand in key areas.

Decline in Transactions and Area Sold

Despite the sharp rise in prices, the real estate market witnessed a contraction in the number of deals. Last week’s 5,837 transactions covered a total area of 18.7 million square meters, with a combined value of 5.7 billion riyals. This marked a notable decline compared to the previous week, which saw 6,225 deals over 34 million square meters, totaling 7.2 billion riyals in value.

Leading Neighborhoods in Real Estate Sales

The list of most traded neighborhoods in the Kingdom remained largely unchanged, with Riyadh neighborhoodscontinuing to dominate the market:

1. Al-Nathim led with 256 deals, totaling over 136 million riyals in value.
2. Arayedh followed in second place, recording 112 deals worth more than 48 million riyals.
3. Namar ranked third with 108 transactions valued at over 89.8 million riyals.
4. Sidra secured the fourth position with 101 deals amounting to 117.5 million riyals.
5. Al-Janadriyah rounded out the top five with 77 transactions, totaling 83.9 million riyals.

Conclusion

The sharp increase in real estate prices, combined with a drop in transaction numbers, suggests a shift in the market dynamics, potentially driven by heightened demand in prime areas and limited supply. The performance of Riyadh neighborhoods continues to underscore the city’s position as a key player in the Kingdom’s real estate sector.