Total real estate transactions (local and foreign transactions) stood at 23,130, the lowest level since 2010. In fact, the number of total transactions witnessed a 17.74% yearly drop and amounted to $2.91B by the end of May 2015.
The decline in real estate appeal is quite evident following the Arab Spring in 2010, as the six-month moving average by May 2015 had declined by 37.87% from May 2010. Moreover, a seasonal effect is depicted as the main drops are noticed in the first 6 months of each year, followed by a subsequent recovery in the second half of the year. This seasonal effect confirms the decline in the real estate with peak points showing a clear drop from one year to another. The reasons behind the decline in real estate activity are many, starting by the oversupply that landed on the market at the beginning of the Arab spring following a 4 year period of a booming real estate market. In addition, the demand was hit and foreign investors shied away as regional tensions exasperated and domestic political and security situations deteriorated.
In contrast, figures revealed that foreigners’ share of total real estate transactions went up yearly from 1.53% to 2.36% by May 2015. This improvement probably came about as security developments eased during the first five months of 2015, which positively impacted tourism activity and foreign investors’ sentiment.
On another note, average value of real estate transactions went down by 7.57% y-o-y from $136,041 by May 2014 to $125,746 in the same period this year.
Total Real Estate Transactions by May