Saudi Arabia recorded SR36 billion ($9.58 billion) worth of transactions in the residential real estate sector in the second quarter of 2022, recording a 21.4 percent increase over the same period last year, the latest market report by the global real estate adviser CBRE revealed. While the volumes of residential transactions fell by 19.9 percent to over 44,000 deals in the second quarter when compared to last year, the Kingdom saw the overall value of translations increase due to a spike in apartment prices.
The average apartment prices, on a per square meter basis, across the Kingdom have increased by 6.2 percent in the year to the second quarter of 2022. This was led by Saudi city Alkhobar which recorded a growth of 11.3 percent in apartment prices, followed by Jeddah and Riyadh with a spike of 5 percent and 4.2 percent, respectively, in prices in the second quarter.
However, aside from Alkhobar, all major cities registered a sharp decline in the annual rate of price growth in the second quarter of 2022, compared to the quarter earlier, revealed CBRE’s Saudi Arabia Real Estate Market Review Q2 2022 report. In line with the national trend, all the major cities saw a fall in the number of residential transactions in the year to the second quarter, with the Kingdom’s capital leading the chart with over a 33 percent fall compared to a year earlier. Jeddah and Dammam followed suit with a drop of 6.2 percent and 3.4 percent respectively.
