Saudi Arabia’s decision to exempt real estate transactions when it increased value-added tax (VAT) last year to 15 percent helped to boost residential market activity. The residential market witnessed a 1.6 percent increase in Riyadh apartment-sale prices, a 2 percent decrease in Jeddah prices, and a 0.8 percent rise in Dammam.

However, residential villa prices fell in Riyadh by 2 percent, 3.1 percent in Jeddah, and 5.1 percent in Dammam. The total volume of residential transactions rose by 11 percent in Riyadh, and 17 percent in Jeddah, which also witnessed a 16 percent increase in the total value of transactions.

The review showed that the Kingdom’s private non-oil economy expanded during the last quarter of 2020, and its December index reading was the highest in 12 months. However, both retail and office markets softened in the last quarter. Vacancy rates across grades A and B office spaces increased by 1 percent and 3 percent, respectively, from 2019 in Riyadh, Jeddah, and Dammam.

Source Credit: Zawya