Real Estate Prices Soaring, Rentals Falling –Jadwa Investment Reveal

Real estate prices in the Kingdom increased by 0.9% on an annual basis in the 4h quarter of 2021, resulting in an average annual increase of 0.5% for the year, according to Jadwa Investment Company.

This was primarily due to an increase in residential real estate prices, by 1% on an annual basis, while commercial real estate prices fell by 0.6 percent.

Residential real estate prices in Riyadh increased the most, by 3% on a yearly basis, in 2021as a whole, compared to a 0.5% fall in prices in Madinah.

On an annual basis, the overall inflation rate grew by 1.2%, but declined by 0.1% on a monthly basis.

Prices in the “housing and services” category continued to fall this month, because of a 1.9% drop in the “housing rents” subcategory, which strengthened deflationary pressures on prices.

In general, average inflation rate in 2021 was 3.1%, compared to estimates of 3.2%, with domestic prices remaining relatively unaffected by the global upward trend, in inflation rates, till now.

Inflation rate is predicted to average 1.7% in 2022.