The Saudi real estate market recorded varying declines in its activities after earlier shrinking for nine months in a row, reports London-based Asharq Al-Awsat citing official data.
According to the real estate index issued by the Saudi Ministry of Justice, these declines come as a reaction to the recession that hit the heart of the market, which almost had the strongest impact on the real estate sector in Saudi Arabia.
The index shows that, during the first half of 2015, the market registered consecutive decreases in demand.
These decreases were not accompanied by a drop in value until recent weeks, as the market began to respond to the demand deficit, which achieved record levels and eventually affected prices.
Residential land led the declines, with prices falling by 20 per cent, followed by residential buildings, which fell by ten per cent and, most recently, villas were the least affected, with declines of seven per cent.
Real estate experts attribute the declines to different reasons: the impact of land fees, the impacts of the Ministry of Housing projects, the rationing of mortgages and weak demand.