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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)
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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.

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Saudi Arabia, IMF, World Bank Stress Int’l Commitment to Syria’s Economic Recovery

Saudi Finance Minister Mohammed Al-Jadaan, International Monetary Fund (IMF) Managing Director Kristalina Georgieva, and World Bank Group (WBG) President Ajay Banga are seen at Friday's meeting. (SPA)
Saudi Finance Minister Mohammed Al-Jadaan, International Monetary Fund (IMF) Managing Director Kristalina Georgieva, and World Bank Group (WBG) President Ajay Banga are seen at Friday's meeting. (SPA)
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Saudi Arabia, IMF, World Bank Stress Int’l Commitment to Syria’s Economic Recovery

Saudi Finance Minister Mohammed Al-Jadaan, International Monetary Fund (IMF) Managing Director Kristalina Georgieva, and World Bank Group (WBG) President Ajay Banga are seen at Friday's meeting. (SPA)
Saudi Finance Minister Mohammed Al-Jadaan, International Monetary Fund (IMF) Managing Director Kristalina Georgieva, and World Bank Group (WBG) President Ajay Banga are seen at Friday's meeting. (SPA)

Saudi Finance Minister Mohammed Al-Jadaan, International Monetary Fund (IMF) Managing Director Kristalina Georgieva, and World Bank Group (WBG) President Ajay Banga stressed on Friday their commitment to Syria’s economic recovery.

Meeting on the sidelines of the 2025WBG/IMF spring meetings in Washington, they co-hosted a high-level roundtable for Syria, bringing together the Syrian authorities, finance ministers, and key stakeholders from multilateral and regional financial institutions, as well as economic and development partners.

“Building on earlier discussions – including at the Paris Conference on Syria (February 13), the AlUla roundtable on February 16 and Brussels IX conference (March 17) — this event provided a platform for the Syrian authorities to present their ongoing efforts to stabilize and rebuild their country, reduce poverty, and achieve long-term economic development,” they said in a joint statement.

“There was broad recognition of the urgent challenges facing the Syrian economy and a collective commitment to support the authorities' efforts for recovery and development. Priority will be given to efforts to meet the critical needs of the Syrian people, institutional rebuilding, capacity development, policy reforms, and the development of a national economic recovery strategy,” it added.

“The IMF and WBG were called upon to play a key role in providing support in line with their mandates and reflecting shareholders' support, in close coordination with multilateral and bilateral partners,” it continued.

“We welcome the efforts to help Syria reintegrate with the international community and unlock access to resources, to support the authorities' policy efforts, address early recovery and reconstruction needs, and promote private-sector development and job creation,” read the statement. “We also support the Syrian authorities' efforts to strengthen governance and increase transparency as they build effective institutions that deliver for the people of Syria.”

“We extend our gratitude to all participants for their valuable contributions and commitment to support efforts by the Syrian authorities to rebuild Syria and improve the lives of the Syrian people,” it stressed.

The officials will convene again at the annual meetings of the IMF and WBG in October 2025 to monitor the progress achieved and harmonize global efforts in advancing Syria's economic-recovery and prosperity.