Saudi real estate saw a decline in transactions at the end of 2016's first quarter. In fact, it was the weakest figure on record since 2011.
Saudi real estate transactions dropped 7.7 percent to $22.2 billion as compared to the statistics from the same period in 2015. Saudi's real estate market had suffered over the previous year with property values dropping by at over one fifth its original value. The drop in all of these areas are attributed as a major result of the recession. According to Al Iqtisadiah's report, agricultural land covered 85 percent of the stocks in terms of acreage. Observers considered this as a manifestation of the White Land tax wherein investors looked at properties located on the outskirts of the new levy's defined boundaries, as reported by Dentons.com.
The number of transactions in Q1 2016 decreased by 20 percent compared to the numbers from last year, and by 26.7 percent compared to 2014, gaining 62,000 deals.
The number of properties that exchanged hands decreased by 20 percent if to be compared with the same period last year, and 26.5 percent compared to 2014. With the figres, the industry only gained 66,500 lands. In terms of acreage, volumes increased 28.6 percent compared to the same time period in 2015, gaining 979 million square meters, according to a feature from Constructionweekonline.com.
Meanwhile, after the Saudi Binladin crane accident, which killed over 108 people and injured several others, Saudi Arabia's Labour Ministry had implemented up to 60 work-related regulations and penalties for breaking specific laws. Last October, the ministry announced regulations, including several for safety, which subjects companies to heavy penalties including multiple fines and jail time upon failure to adhere.
Saudi real estate companies are not exempted, especially those who will count weekends as part of an employee's annual leave. These companies will be fined SAR 100,000. Visa related breaches such as providing visas for migrants or employing individuals without proper permits will be fined SAR 50,000.
