Rising interest rates and market trends prompt Saudis to delay property purchases

Real estate analyst Matar Al-Shammari said that rising interest rates, anticipation of balance land plots in Riyadh, stable rental prices, and expectations of falling property values have driven some individuals to delay decisions on home purchases and mortgage financing.

Speaking to Al-Ikhbariya TV, Al-Shammari explained that interest rates are the main driver for mortgage financing. He noted that the Federal Reserve's decision to keep interest rates high has affected key interest rates, which in turn has influenced demand for mortgage loans. Many people are also waiting for the opportunity to acquire land in Riyadh, choosing to postpone property purchases through financing in hopes of securing a plot. Additionally, the stabilization of rental prices has led some to delay buying a home.
He added that some expect property prices to decline to levels more in line with their financial capabilities. Al-Shammari pointed out that most developers now have a different approach than in the past, as they are actively seeking buyers, while buyers are looking for financing terms that suit their budgets.

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