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Real Estate

Saudi Arabia’s decision to exempt real estate transactions from a VAT charge has helped to boost activity.

News in brief

01 June 2021

Saudi property market shows first signs of a recovery

Saudi Arabia’s property market has started showing the first signs of a recovery following the Covid-19 outbreak, buoyed by an overall improvement in the country’s business activity, according to property expert Knight Frank.

This is in turn driving an improving outlook for the kingdom’s real estate market with the apartment values in the kingdom’s top markets Riyadh, Jeddah and Dammam posting steady growth and residential mortgage loans surging by 38 per cent in February over last year, stated Knight Frank in its Q1 2021 Saudi real estate market review.

“Like other global economies, the pandemic has driven a widespread economic slowdown across the kingdom, however improved business confidence during the closing months of 2020, underpinned by economic reforms linked to Vision 2030 and the rapid response to Covid-19 has helped to drive a turnaround in performance in all main segments of the real estate market,” remarked Faisal Durrani, the Head of Middle East Research.

On the residential sector, Knight Frank said the apartment values in the kingdom’s top markets increased – Riyadh (4.4 per cent), Jeddah (6.5 per cent) and Dammam Metropolitan Area (3.2 per cent) – to end Q1 at SR3,450 ($919) per sq m, SR3,950 ($1,052) per sq m and SR2,050 ($546) per sq m, respectively.

Villas on the other hand experienced price falls across the board, it points out.

In Riyadh, the average prices fell by 1.6 per cent to SR3,750 per sq m, while in Jeddah, the villa sales prices were down 6.3 per cent to a little over SR5,000 per sq m, while in the Dammam Metropolitan Area (DMA), villa values declined by almost eight per cent during Q1, leaving them at around SR3,250 per sq m, it adds.

According to Durrani, the recent decision to exempt real estate transactions from a 15 per cent VAT charge has helped to boost activity in the residential market.

Diyar Al Muharraq to start work on new mosque

Diyar Al Muharraq, one of the largest real estate development companies in Bahrain, has announced plans to start construction on a new mosque, named ‘Malalla Mosque’, in addition to a hall, named after the late Yousif Abdulla Janahi, as part of the Sarat residential project.

Complementing the masterplan seamlessly, the initiative comes in line with Diyar Al Muharraq’s ongoing commitment to providing facilities that will enhance the lifestyle of its residents, as well as visitors, says the developer.

The construction of the Malalla Mosque and hall has been assigned to Tamam Contracting Company,.

Set to span a total area of 844 sq m, the Malalla Mosque will include a prayer hall for both men and women, an expansive parking lot, as well as a hall in honour of the late Yousif Abdulla Janahi, exclusively designated for religious events.

On completion, the mosque will serve a neighbourhood comprising approximately 160 residences, and will welcome over 200 worshippers at a time.

Characterised by its traditional Bahraini design that was inspired by historic local architecture, the mosque’s aesthetics are further complemented by subtle modern touches, embodying the simplicity of authentic Bahraini heritage and Islamic architecture.

Diyar Al Muharraq is one of the largest integrated cities in the kingdom, offering a variety of housing solutions and a luxurious modern lifestyle while persevering the core family values in Bahraini society.

Wasl properties launches new 777-unit residential project in Dubai

UAE-based wasl properties has announced the release of its new residential development, ‘masaken wasl’, in Al Qusais, strategically located between Dubai and Sharjah.

The development offers 777 modern and spacious apartments to meet the various needs of residents with studios, one-, two- and three-bedroom apartments, in addition to other unit options that include maids’ rooms, says wasl.

The project has several modern facilities, including a gymnasium, a swimming pool, a kids play area, and parking lots for tenants, as well as benefits from its proximity to the metro station, Al Bustan Shopping Centre and Al Mulla Plaza.

Rental prices (per year) at the development start from AED29,000 ($7,893) onwards for studios and AED75,000 ($20,415) for a three-bedroom apartment with a maid’s room.

The new launch comes as part of wasl’s analysing of market trends and caters to the demand for units for different segments of tenants across the emirate.

Al Qusais provides an ideal option for those wishing to live in a modern project, especially if they work in Dubai, that is in vicinity to entertainment and business centres and enjoys easy access to the most important destinations, it adds.