Value of Saudi Residential Deals Drops 26.9% Annually in Q2 as Reported, Number of Deals Falls 14.2%

The value of residential market deals in the Kingdom of Saudi Arabia declined by 26.9% year-on-year during the second quarter of the current year, as reported, reaching 37.67 billion riyals, while the number of completed deals dropped by 14.2%.

This decline reflects a range of factors, chief among them the rise in real estate financing costs amid a globally high interest rate environment, in addition to rising price levels in some areas, which have begun to constrain citizens' purchasing power.

The Saudi residential sector had witnessed a boom in transactions between 2021 and 2023, driven by government housing programs and financing facilities; however, that upward wave has begun to exert pressure on price competitiveness.

The Ministry of Municipal and Rural Affairs and Housing is closely monitoring these indicators as part of its efforts to achieve homeownership goals under Vision 2030, having launched multiple support programs offering accessible financing for citizens wishing to own homes.

Analysts remain cautious in their expectations for the second half of the year, pointing out that any easing in interest rates or expansion of support programs could revitalize demand, though high prices remain a structural obstacle for many buyers.