Stable prices drive Q3 residential deals in Riyadh: Knight Frank

Residential transactions in Riyadh surged 122 percent year-on-year (YoY) in Q3 2019, pointing to a recovery for the fourth consecutive quarter, Knight Frank said in a recent report.

Soft market conditions, efforts to expand the mortgage market, largescale housing schemes, and improving consumer sentiment contributed to this positive momentum, it added.

The value of residential transactions also rose 139 percent YoY in Q3, driven by a surge in transaction volumes and stabilization in sales prices.

Residential supply reached 1.24 million housing units at the end of Q3 2019. Approximately 8,000 residential units were added to the market in Q3 2019, with 70,000 units likely to be handed over between 2019 and 2021.

Meanwhile, villa sale prices were up 1.4 percent YoY, indicating “the market may be heading towards to the bottom of its cycle”. On the other hand, the rate of decline in apartment sale prices continued to moderate, reaching -0.4 percent YoY.

Overall, Knight Frank said it expects activity in the residential sector to maintain a positive momentum over the next 12 months, driven by the Sakani affordable housing program and the regulatory efforts to expand the mortgage market.