Al-Marsad Newspaper: The real estate specialist, Khaled Al-Mobayed, explained the reality of the controversy between real estate owners about the decline in real estate.
“There is a funny thing, which is that the economists who advocate the collapse of real estate do not have the possibility to buy even if prices collapse, and the defenders of prices do not have real estate,” Al-Mobayed said during the MBC Week program.
price correction
He added: “The problem of inflation is not only present in the Saudi market, and there is a rise in the prices of building materials all over the world.”
He pointed out that the rise in real estate prices does not serve the economy, real estate developers, or citizens.
Al-Mobayed continued: “I am against those who call for the collapse, because the collapse is negative for the economy. We are talking about correction, and correction is a normal thing in any market.”
high interest
Al-Mobayed explained: “The rise in interest certainly affects real estate prices, because most of these properties were purchased through bank loans.”
Al-Mobayed pointed out that the rises that occurred in 2017 will not be repeated, and we must be balanced in the process of expectations, because any expectations of a collapse in real estate prices will scare away investors, who are the only source in providing housing units.
Al-Mobayed advised whoever can buy his house today to buy it, but whoever wants to invest should be careful in making the decision.
Lower real estate deals
On the other hand, the daily rate of the number of real estate deals in the Al-Khair scheme in Riyadh decreased from an average of 32 deals per day in January 2022, to an average of 7 deals per day in August 2022, noting that it also recorded a decrease from an average of 24 deals per day in August 2021 to an average of 7. Deals per day in August 2022.
The data of the Ministry of Justice showed a decrease in the value of real estate deals for the month of July 2022 by 63.2%, compared to the previous month, June 2022, as the total value of real estate deals in the Saudi market amounted to 9.5 billion riyals, and a decrease of 25.3% compared to July of last year.
The total number of real estate deals executed in the Saudi market in July amounted to 11,190 deals, a decrease of 46% compared to the previous month and a decrease of 25.7% compared to the same period last year.
In the same context, the prices of plots of land in Al-Malqa district, north of the capital, decreased by half, recording 3,483 riyals per square metre, after they were sold last year at 6 thousand riyals for the same plots, down by nearly 42%.