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Property market deals in Saudi Arabia decline significantly

Mainly affected by the approval of new fees on white lands

Real estate market deals in Saudi Arabia fell during the past week by eight per cent and stood at SAR6 billion, influenced largely by the plunge in residential sector deals by 17.5 per cent.

The local real estate market worsened for the second week in a row, driven by the approval of the new regulation of fees on undeveloped plots of land in urban areas (white lands), reports Saudi-based Alweeam.

The number of properties sold in the residential sector also declined for the third consecutive week – by 0.4 per cent to settle at 4,690 units sold during the week – affected by the major decline in the sale of residential lands.

The effects of the approved regulation on the white lands were not limited to the decline in the value of the deals, as they also strongly affected the bloated prices of all kinds of real estate assets.

The results of comparing average prices during the last 11 months of 2015 with prices during the same period of 2014 showed an aggravated decline rate in price averages.

(SAR1 = AED 0.98, at the time of publishing)