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FINANCIAL NEWS
Saudi housing contracts plunge 5pct in 2015
28 Jan 2016
(MENAFN) The Saudi market is maintaining a solid performance with a continued growth momentum, amid the macro background of lower oil prices and reduced government spending.
As a result, the kingdom has witnessed a shifting demand in the residential market, as the trend moves toward property rental from sales, thus housing transactions fell by 5pct in 2015.
Accordingly, rental demand is forecasted to continue in 2016 but at a slower rate in comparison to 2015, while little or no change is likely in the sales market throughout the current year.
It’s no secret that lower oil prices have put pressure on economic growth, liquidity, government budgets, the stock market and asset prices, which naturally led to cuts in subsidies.
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