Saudi Housing Prices Tumble Nearly 10 %
As per an official data, home prices in Saudi Arabian have tumbled by nearly 10 % from a year ago in the first quarter because of pressure on the economy from low oil prices and government austerity measures.
Residential real estate prices sank 9.5 % in the January-March quarter, according to the General Authority for Statistics’ Real Estate Price Index. The decline accelerated from a 7.3 percent drop in the fourth quarter of last year.
Last month, the government said that in order to stimulate economic growth, it was restoring financial allowances for civil servants that were cut last September to save money. But other austerity steps are expected in coming months, so this may not provide much support to home prices.
Commercial real estate prices plunged 11.7 percent from a year earlier in the first quarter, the authority said.