Knight Frank: ” Riyadh” the third city in the world rise in real estate prices

The real estate market in the Kingdom witnessed a wave of high prices, which led its prices in 2022 to grow at the fastest pace in 8 years, driven by the increase in residential land prices.

In this regard, Riyadh is the third city in the world to increase real estate prices due to the increase in demand.

Liam Bailey, senior analyst at Knight Frank real estate agency, said that Riyadh ranked third in the world last year in terms of rising residential real estate prices, due to the huge demand from investors.

Luxury real estate prices in Dubai

Liam Bailey added that the residential real estate market recorded a growth of 5.2% in 2022, while luxury real estate prices in Dubai increased by 44% last year, amid expectations that luxury real estate prices in Dubai will increase by 14% in 2023.

The cities of New York and London

According to Knight Frank's chief analyst, "The cities of New York and London were at the top of the ultra-prime real estate markets, noting the return of wealthy investors to the real estate market in London".

The annual Knight Frank wealth report showed that the world's average wealthy own 3.7 homes.

The report showed that 17% of the wealthy bought a home in 2022, and 15% of the wealthy plan to buy a home in 2023.

luxury real estate

The Emirate of Dubai was the highest in luxury real estate prices among the 100 cities, and the city of Aspen ranked second with a growth of 28%, and the city of Riyadh ranked third with an increase of 25%.

Facing high prices in Saudi Arabia

At the beginning of this year, the Saudi government began issuing decisions to counter this rise, foremost of which is the provision of residential lands and financing facilities, at a time when some fear an increase in the gap between purchasing power and real estate prices.

The decisions also aim to preserve the goals of the Kingdom's Vision 2030, which aims to raise home ownership rates of Saudis to 70% by the end of the plan's term.

The Saudi General Authority for Statistics stated that the annual average of the real estate price index increased by 1.1% during the year 2022 compared to the annual average for the year 2021, due to the increase in the average prices of the residential sector by 2.1%.

Real estate prices in the residential sector in Saudi Arabia increased by 2.6%, affected by the increase in the prices of land plots by 2.7%, on an annual basis in the fourth quarter of 2022.