Land buy-sell deals during the past ten months in Saudi Arabia accounted for approximately 86 per cent of the total real estate sales, but their value is still 20 per cent lower than the figure recorded last year.
The Ministry of Justice’s data shows that the highest value for buy-sell deals of residential and commercial land was during last Rajab (April 20 to May 19, 2015), amounting to SAR43 billion, followed by Safar (November 23 to December 2014) amounting to SAR36bn.
Meanwhile, Shawwal (July 17 to August 16, 2015) recorded the lowest value of sales, amounting to SAR15bn, reports UAE-based Aliqtisadi.
These statistics have prompted a number of real estate experts to confirm that land buy-sell deals will witness a corrective and a recovery phase after the recession, which lasted for a long time.
Real estate experts point out that the rise in prices, which the real estate market witnessed over the past years, is due to several factors, the most important of which is the upward trend of real estate market growth.
This upward trend came as a result of the launch of giant projects in major cities, which accordingly led to a hike in prices during the past few years and then to the overcharge cost of real estate prices that exceeded the financial capacity for the middle class of society.
(SAR1 = AED0.98, at the time of publishing)