Saudi property notes improvement after 5.4% Q3 decline
Knight Frank's Global House Price Index says "the oil-dependent Saudi economy is struggling to gain traction"
Saudi Arabia's property market was among the world's poorest performers in the third quarter of this year, a study has reportedly revealed.
Knight Frank's Global House Price Index showed that Saudi Arabia was ranked 55th out of 56 markets analysed during Q3 2017.
Property prices in the kingdom dropped by 5.4% over the past year, even though "there are signs of an improving picture in recent months".
Real estate values increased by 0.7% and 0.5% over the past six- and three-month periods.
According to Arabian Business, Knight Frank added: "(Q3 2017) marks the inclusion of Saudi Arabia within the index for the first time.
"Latest data shows prices slipped 5.4% on an annual basis, meaning it is second only to Ukraine as the weakest-performing market.
"The oil-dependent Saudi economy is struggling to gain traction, which along with the recent introduction of a levy on expatriate workers is stifling housing demand."
This November, a report showed that Saudi Arabia’s hotel sector faced declines in Q3, despite nearly 1,300 keys being added to the market.
According to Colliers International's market review, while several new hotels have come online in Riyadh, Jeddah, and Makkah, new supply and lower demand has resulted in a dip in revenue per available room (RevPAR), most distinctly in the Saudi capital.
Despite the opening of two branded hotels – Swiss Spirit and Centro Waha – adding another 370 keys, Riyadh’s hotel market saw a third consecutive year-on-year percentage decline in Q3 RevPAR performance, a dip that is expected to carry into the next three months.