Saudi Housing Sector Reduces Real Estate Transactions by 32%

A general view of Riyadh, Saudi Arabia (Asharq Al-Awsat)
A general view of Riyadh, Saudi Arabia (Asharq Al-Awsat)
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Saudi Housing Sector Reduces Real Estate Transactions by 32%

A general view of Riyadh, Saudi Arabia (Asharq Al-Awsat)
A general view of Riyadh, Saudi Arabia (Asharq Al-Awsat)

The value of real estate transactions in Saudi Arabia has declined by 32% in a week due to the contraction in the housing sector, which has been significantly affected by the record drop in land and villa transaction values.

This has led to a decrease in transaction values to historically low levels, driven by the persistently high mortgage interest rates.

The Saudi real estate stock market index remained stable at 10,014 points last week, keeping the total value of real estate transactions at SAR 5 billion (approximately $1.3 billion).

This resulted in a 6.9% decrease in the overall number of real estate transactions to 5,100 transactions.

In an interview with Asharq Al-Awsat, Ahmed Al-Drees, the general manager at “Al-Mustaqbal” real estate construction company, pointed out that the main aim is to lower prices to make them more accessible to everyone.

The market has recently seen a slight decline in prices, which may be a precursor to a more substantial market downturn.
The cumulative decrease in transaction values will lead to price reductions, especially for investors looking to exit the market or those whose financial capacity has been affected by the recession, particularly those tied to previous financing contracts or facilities.

Al-Drees also believes that mortgage loans are no longer beneficial in the face of rising interest rates, emphasizing that the essence of the problem lies in the excessive increase in property values beyond the reach of a significant portion of aspiring property owners.

This is evident in the noticeable decrease in launching advanced real estate projects, which have significantly declined due to the market conditions.

Al-Drees pointed out that current real estate marketing campaigns are more focused on selling existing properties rather than launching new projects.

Over the past decade, the total market value of traded properties has reached approximately SAR 1.43 trillion (approximately $381 billion).

Within the local real estate market activity, the overall weekly value of real estate transactions has witnessed a 32% decline, influenced by the downturn in all major market sectors, particularly the housing sector.



EU Says it Agreed with UAE to Launch Free Trade Talks

EU Commission President Ursula von der Leyen looks on in Brussels, Belgium, 10 April 2025. EPA/OLIVIER MATTHYS
EU Commission President Ursula von der Leyen looks on in Brussels, Belgium, 10 April 2025. EPA/OLIVIER MATTHYS
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EU Says it Agreed with UAE to Launch Free Trade Talks

EU Commission President Ursula von der Leyen looks on in Brussels, Belgium, 10 April 2025. EPA/OLIVIER MATTHYS
EU Commission President Ursula von der Leyen looks on in Brussels, Belgium, 10 April 2025. EPA/OLIVIER MATTHYS

The European Union said on Thursday it agreed with the United Arab Emirates to launch free trade talks, amid the upheaval and uncertainties created by US President Donald Trump’s decision to impose tariffs. He has since walked back some of the tariffs.

“Today, (the European Commission) President von der Leyen held a cordial phone call with His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates. During their discussion, they agreed to launch negotiations on a free trade agreement,” the EU said in a statement, according to Reuters.

The talks will focus on trade in goods, services, investment and deepening cooperation in strategic sectors including renewable energy, green hydrogen and critical raw materials, the EU said.

The UAE's president said the decision to initiate negotiations on a Comprehensive Economic Partnership Agreement (CEPA) with the EU reflects a shared determination to unlock the full potential of cooperation and advance their economic, trade, and investment ties in support of development aims.

“The CEPA would create new avenues for cooperation between the UAE and EU, increase trade and investment flows, and strengthen partnerships between the business communities of both sides,” Sheikh Mohamed wrote on his X account.

He emphasized that UAE-EU relations are founded on a common vision of stability, growth, and prosperity.

By reducing tariffs and unnecessary trade barriers and improving market access for goods and services, the pact is expected to foster opportunities in key sectors including advanced manufacturing, healthcare, logistics, and artificial intelligence, UAE's state news agency (WAM) said.

The EU is the UAE's second-largest trading partner, accounting for 8.3% of the Emirati total non-oil trade. The wealthy Gulf state is also the EU’s largest export destination and investment partner in the Middle East and North Africa, WAM added on Thursday.