As of the last week ending June 22, 2024, the real estate exchange recorded 518 transactions, with a transaction value exceeding SAR 331.7 million and a transaction area of approximately 900,000 square meters. The highest price per square meter reached SAR 15,000, with an average price of SAR 371 per square meter.
In these transactions, the Al-Wisam district in Jeddah had the highest transaction value, surpassing SAR 89.3 million. Following closely was the Arid district in Riyadh, with transactions amounting to SAR 6.35 million. Other notable areas included the Al-Rimal district in Riyadh with SAR 5.59 million, the Jawharat Al-Arous district in Jeddah with SAR 3.98 million, and the Al-Bukayriyah district in the northwest with SAR 700,000.
Experts highlight the real estate industry as the safest investment option amid the fluctuations in stock and gold markets and rising interest rates. The stable growth in Saudi Arabia's real estate market is attributed to investor confidence in government policies and the launch of major real estate projects like Qiddiya, NEOM, and the Red Sea Development Project, which have injected substantial funds into the market.
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Market observers believe that the performance of the Saudi real estate market reflects significant growth and sustainable demand. The volume and scale of transactions registered through the real estate exchange indicate strong investor confidence, driven by government efforts and economic reforms implemented as part of the Vision 2030 initiative.
The real estate sector is a fundamental pillar of Saudi Arabia's economy, contributing significantly to the GDP through large-scale investments and development projects. Government regulations and initiatives to promote real estate investment have invigorated the economy, created widespread employment opportunities, fostered new skills in the real estate sector, reduced unemployment rates, and achieved sustainable development.
Experts attribute the sustained growth and development of the Saudi real estate industry to several factors, including economic reforms and investment policies, government efforts to improve the business environment through simplified procedures, large-scale projects within Saudi Arabia that attract investment, increased demand for housing and related services driven by urbanization, and the political and economic stability that enhances investor confidence and encourages long-term real estate investment.
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Specifically, the Qiddiya project is a major entertainment and cultural development expected to attract many tourists and investors. The NEOM project is a futuristic city plan spanning three countries (Saudi Arabia, Egypt, Jordan) aiming to create a technologically advanced, sustainable city. The Red Sea Development Project is a luxury tourism initiative designed to attract high-end tourists through the construction of resorts and tourism facilities. These projects have not only attracted substantial domestic and international investment but also created numerous local employment opportunities, driving economic growth.
Additionally, the government has made significant efforts to simplify business procedures and improve the investment environment. For example, simplifying the permit application process and offering more financial incentives and tax breaks have attracted many investors to the real estate market. These measures have not only increased market vitality but also boosted investor confidence.
The acceleration of urbanization has also positively impacted the real estate market. As more people migrate to urban areas, the demand for housing and related services continues to grow, presenting enormous development potential for the real estate market. The government has responded by constructing more residential projects and infrastructure to meet the housing demand arising from urbanization, further promoting the development of the real estate market.
