Riyadh topped the list with 40% of the value of deals in the Kingdom, distributed over the residential and commercial sectors. The value of residential deals amounted to 14.05 billion riyals, while commercial deals amounted to 13.78 billion riyals. Jeddah came next, after Riyadh, with 16% of the deals in the Kingdom, with a value of 8.79 billion riyals for the residential sector and 2.57 billion riyals for the commercial sector.
Although the figure is a decline from last year, this decline is a global phenomenon and is due to external reasons affecting the real estate sector, the most important of which are inflation and the increase in interest rates. However, there are other reasons that will help in an increase in the numbers in the local market during 2023, the most important of which are:
• Increasing the real estate supply.
• Achieving a balance in supply and demand to reach appropriate prices within the developed neighborhoods.
• Reducing monopoly practices.
• Handing over a number of housing program projects to citizens during the next year will cause a recovery in the sector, especially in the new neighborhoods, and thus affect the area surrounding the projects.
• National Housing Company announcements during the 2023 budget:
o Launching nearly 150 projects, including 145,000 housing units.
o Developing approximately 300 million square kilometers in more than 200 projects around the Kingdom.
o Work on developing 30,000 housing units through the developmental housing program.
Which will directly affect the recovery of the sector in the Kingdom.
In turn, Mohammed Al Habib Real Estate Co. will contribute to the development of more than 2,000 housing units during the year 2023 with several different products distributed among high-end residential apartments in the Asala Residence projects, and (villas projects) in residential plans, in the cities of Riyadh and Jeddah to keep pace with the demand in the real estate market through our partnership projects with the National Housing Company. We, at Mohammed Al Habib Real Estate Co., seek to produce a larger number of housing units in various cities of the Kingdom during the coming years.