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Mazaya Monthly Real Estate Report
Week 1 - October 2016
Al Mazaya: Market conditions have helped mitigate
a potential negative impact on property prices
According to Al Mazaya Holding’s
Weekly Report, market conditions
helped mitigate a potential negative
impact on property prices. In the
meantime, the real estate markets in
the region did not witness a collapse
in rental prices, with the recorded price
plummet remaining within rational
levels for investors and end-users
alike. The report highlighted the criteria
adoptedon theSaudi Real EstateMarket
where state-run authorities are heading
for design-driven luxury hotels that are
subject neither to the demand - supply
mechanism nor to the conventional
price growth rates. In excess of a 2
per cent fall was posted in the KSA
Real Estate Market, with a 20 per cent
increase in Jeddah. An annual hike of
3 per cent was recorded on average in
rental prices that have been increasing
in different proportions for the second
year running. Such a trend has caused
landlords to curb the increasing prices
of existing real estate investments.
The real estate market in the region
witnessed unsteady, hovering rates
that have brought landlords tangible
yields over the past two years. A state
of unsteadiness resulted in surging
real estate prices and a remarkable fall
in sales due to multifaceted real estate
demand, varying impact of financial
and economic challenges across all
business sectors, and a yawning gap
between property prices in top localities.