The residential property market in Saudi Arabia remains strong. House prices are rising. Property demand is escalating. Real estate developers are bullish. Here Saudi real estate market…
The residential property market in Saudi Arabia remains strong. House prices are rising. Property demand is escalating. Real estate developers are bullish.
During the year to end-Q4 2011, the average price of single-family dwellings (villas and duplexes) in Riyadh, the capital, rose by 9% to SAR3,150 (US$840) per square metre (sq. m)., according to Colliers International GCC. Likewise, the average price of multi-family dwellings (apartments) increased by 8% to SAR2,860 (US$762) per sq. m. over the same period.
In Jeddah, the average sales price of single-family dwellings (villas and duplexes) soared by 15% to SAR3,980 (US$1,061) per sq. m. in the year to end-Q4 2011 while the average sales price of multi-family dwellings (apartments) rose by 14% to SAR2,450 (US$653) per sq. m.
The latest report published by Jones Lang LaSalle also showed rising house prices. The average price of new villas in Riyadh rose by 4% q-o-q to SAR3,050 (US$813) per sq. m. in Q3 2011. On the other hand, apartment prices rose by 1% q-o-q over the same period to an average of SAR2,343 (US$625) per sq. m.
House prices have been rising for almost a decade now. From 2002 to 2005, house prices rose 13.7% annually while average land prices rose 16.5% per year, according to the National Commercial Bank Capital (NCBC), the largest bank in the Middle East. In 2006, land price have risen 20% – 40% y-o-y.
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