أرشيف Housing Market | ByMENA https://bymena.com/tag/housing-market/ News about technology, business, start ups, and entrepreneurship in the MENA region Tue, 19 Mar 2024 13:14:19 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.5 https://s3.eu-west-1.amazonaws.com/cdn.bymena.com/wp-content/uploads/2023/08/cropped-New-Project-32x32.png أرشيف Housing Market | ByMENA https://bymena.com/tag/housing-market/ 32 32 Inflation in Saudi Arabia increased to 1.6% in January. https://bymena.com/inflation-saudi-arabia-increased-1-6-in-january/ Tue, 19 Mar 2024 10:28:21 +0000 https://www.bymena.com/?p=38615 The rate of inflation in the Kingdom of Saudi Arabia increased to 1.6% in January up from 1.5% in December. Rent was the biggest factor in the increases, having a total of 21% of this period’s inflation weight. The kingdom saw price decreases as well which include clothing, footwear, transporting, furnishing and house equipment. The …

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  • The rate of inflation in the Kingdom of Saudi Arabia increased to 1.6% in January up from 1.5% in December.
  • Rent was the biggest factor in the increases, having a total of 21% of this period’s inflation weight.
  • The kingdom saw price decreases as well which include clothing, footwear, transporting, furnishing and house equipment.
  • The rise of the wholesale price index was caused by basic chemicals which saw price increases that went up to 34%
  • The Main Driver of CPI inflation was an increase in housing, water, electricity and fuel prices, with prices seeing a 7.8% increase.

    • The Kingdom of Saudi Arabia has seen inflation increase from 1.5% in December 2023 to 1.6% in January 2024.

    Price Increase:

    The General Authority for Statistics (GASTAT) announced in a report that the monthly consumer price index was influenced by a 1.1% increase in prices for housing, water, electricity, gas and fuel.

    The increase was mainly due to the uptick in housing and rent prices, where the market saw a 1.2% increase.

    The price of refined petroleum products increased by 12% compared to last year.

    This rise in the wholesale price index was driven by basic chemical prices which went up by 34%

    Food and beverage prices increased by 0.3% while restaurant prices increased by 0.2% while prices for personal goods decreased by 0.5% in January compared to December.

    Additionally, compared to January of 2023, housing, water, electricity, gas and other fuel prices increased by 7.8% last month.

    Price decline:

    The Price of furnishings, maintenance and household equipment decreased by 3.3%.

    The price of clothing and footwear dropped by 4.1%.

    Transport and delivery fees decreased by 1.1%.

    Quotes:

    Announced in the GASTAT report, “Prices for rents were the main driver of the inflation rate in January 2024 due to their high relative importance in the Saudi consumer basket with a weight of 21%”

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    ]]>         Saudi Arabia’s Real Estate market sees a decline during 2023. https://bymena.com/saudi-arabias-residential-transactions-sees-decline-during-2023/ Wed, 14 Feb 2024 08:21:16 +0000 https://www.bymena.com/?p=38589 Residential transactions saw a 16% drop from last year in Riyadh and Jeddah to under 150,000 sales. The total value of mortgages saw a decline of 36%, reaching USD21.3 billion. Riyadh retained its home values, with apartment prices even increasing by 4.5% and transaction volume increasing by 7% Residential transactions (transferal of ownership) in Riyadh …

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  • Residential transactions saw a 16% drop from last year in Riyadh and Jeddah to under 150,000 sales.
  • The total value of mortgages saw a decline of 36%, reaching USD21.3 billion.
  • Riyadh retained its home values, with apartment prices even increasing by 4.5% and transaction volume increasing by 7%

    • Residential transactions (transferal of ownership) in Riyadh and Jeddah, which account for 59% of all real estate deals by value, saw 150,000 sales between January and November of 2023, a 16% decrease.

    Saudi Arabia is seeing a nationwide decrease in real estate transactions, the number of transactions dropped by 17% while the total value of transactions dropped by 9% in 2023, amounting to a total value of almost $53 billion.

    Faisal Durrani, Partner – Head of Research, MENA, said: “The residential market has experienced phenomenal price growth over the last two to three years, with prices in Riyadh, for instance, continuing to climb into record-high territory. Unsurprisingly, the high home values have contributed to growing affordability issues, which have been further exacerbated by the rising cost of borrowing. Indeed, interest rates have jumped from around 0.8% in January 2021 to 6% at the end of last year”.

    The Value of mortgage issues saw a big increase from 2018 to 2021 then started to decline again, going from an all-time high of almost USD37.3 billion to USD21.3 billion.

    Real estate prices were retained in Riyadh, unlike the rest of the kingdom, apartment prices increased by 4.5% while villa prices increased by 0.5%.

    The number of transactions rose by 7% while other cities saw drops in transactions.

    Knight frank:

    Knight Frank, which is a global real estate consultancy and real estate agency in London with more than 488 offices stated that the total number of mortgages issued between January to November of 2023 decreased by 35%, which is 13% more than last year.

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