Saudi Arabia’s real estate market is one of the worst performers in the world, according to new data released by Knight Frank.
Its latest Global House Price Index showed that Saudi Arabia was ranked 55th out of 56 markets analysed during the third quarter of 2017.
The index said prices in the Gulf kingdom fell by 5.4 percent over the past year although there are signs of an improving picture in recent months.
Knight Frank data revealed that prices in Saudi Arabia were up by 0.7 percent and 0.5 percent over the past six- and three-month periods.
The real estate consultancy added: “This quarter marks the inclusion of Saudi Arabia within the index for the first time. Latest data shows prices slipped 5.4 percent on an annual basis meaning it is second only to Ukraine as the weakest-performing market.
“The oil-dependent Saudi economy is struggling to gain traction, which along with the recent introduction of a levy on expatriate workers is stifling housing demand.”
Globally, Iceland topped the Q3 rankings with year-on-year price growth of more than 20 percent, ahead of Hong Kong, the Czech Republic, Malta and Canada.
Overall, the Knight Frank Global House Price Index increased by 5.1 percent in the year to September. Prices increased year-on-year in 88 percent of the countries tracked but almost half saw their rate of growth decline compared with last quarter.