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Saudi Arabia’s real estate crisis continues to worsen

Commercial real estate index fell by 27 per cent and housing index fell by 36 per cent

The Saudi real estate index fell by up to about 33 per cent during the month of Ramadan, reports Cyprus-based investing.com.

The deterioration in the Saudi real estate sector happened throughout the kingdom, excluding the region of Najran, which witnessed an increase of 23 per cent.

The Asir region witnessed the maximum decline in the country, dropping by 66 per cent, followed by the Northern Borders province by 55 per cent; the Al-Qassim and Al Jawf regions came in third place, falling by 46 per cent.

As for Riyadh, it has witnessed a slump of 43.3 per cent, Mecca 29 per cent and Medina 37 per cent.

The real estate index measures the value of commercial and residential transactions carried out on a monthly level. On this basis, the value of these transactions in the areas of Saudi Arabia amounted to SAR23.18 billion.

The commercial real estate index fell by 27 per cent to reach SAR9bn and the housing index fell by 36 per cent to reach the monthly value of SAR14bn, which reflects the continued housing crisis in Saudi Arabia.

(SAR1 = AED0.98, at the time of publishing)