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

Higher interest rates, stable rents, and forecasts of declining property values are causing some Saudis to postpone purchasing real estate and securing mortgage financing. According to real estate analyst Matar Al-Shammari, rising interest rates, anticipation of surplus land plots in Riyadh, and stable rental prices are prompting individuals to delay decisions on home acquisitions and mortgage financing.

Speaking to Al-Ikhbariya TV, Al-Shammari emphasized that interest rates are the primary factor driving mortgage financing. He noted that the Federal Reserve's decision to maintain high interest rates has impacted key interest rates, thereby influencing demand for mortgage loans. Many are also awaiting an opportunity to acquire land in Riyadh, postponing property purchases through financing in anticipation of securing a more affordable plot.

Furthermore, the stabilization of rental prices has led some to delay buying a home. Al-Shammari added that many developers now approach prospective buyers differently than before, actively seeking to attract buyers while buyers seek financing terms that fit their budgets.