Al-Marsad newspaper: A British company revealed the reality of the real estate market in Riyadh, and the rate of increase in the prices of apartments and villas, during the past 12 months.
The reason for the high price
A spokesman for the British company said during his appearance on Al-Arabiya channel, that they saw a significant growth in the prices of residential real estate in Riyadh, due to the desire of citizens to move from renting to owning.
big upward pressure
The spokesman added that the demand in Riyadh is currently exceptionally strong, because the government is placing the capital as a new pivotal center for the Kingdom, so what we see at the present time is a significant upward pressure on prices.
Prices are peaking
He continued that prices have peaked, and apartments have increased in one year by 32%, while villa prices have increased by 21%, in the past 12 months.
Actual deals drop
He added that the volume of actual transactions was declining during the first 6 months of this year, and the number of home sales in Riyadh decreased by 60%, compared to last year.
Are prices calming down?
Regarding his expectation that the price situation will calm down, he said that the buyer needs 3 to 4 times his annual income to buy an apartment in Riyadh, and if he wants to buy a villa, he will need 8 times his annual income.
Jeddah prices
A spokesman for the British company continued: “In Jeddah a buyer will need 13 times his annual income to purchase a villa, and the data indicates that we may be at a new peak in prices.”
Overpopulation
Regarding the shortage of supply in the residential sector in Riyadh, he said: “There are now 7.5 million people in Riyadh, and in 2030 the population is expected to reach 17 million people, and we expect to deliver 200,000 new housing units by that time, although it will not suffice for the expected population growth.” “.
Prices of apartments and villas in Riyadh
He continued: “The main issue is affordability, and the extent to which people can afford to move from rent to ownership,” concluding his speech: “If you are looking for a two-room apartment in Riyadh, it will cost more than 750,000 riyals, and the villa is 3 for 4 rooms. It will cost more than two million riyals.