Prices Of Chalets Drop 15% - Few Can Afford Imaginary Rates

Since the end of the second quarter, the price of real estate in Sabah Al-Ahmed Marine and Al-Khairan has declined by about 15 percent due to the decline in real estate deals and a rise in banking interest rates, according to Al-Jarida daily. However, the real estate sources reported that the deals on “chalets” in these two areas witnessed a noticeable decline, for many reasons; including the rise in interest rates, which in turn affected part of the liquidity of this sector, in addition to the fact that real estate prices reached fantastic numbers during the last period, which made purchasing power limited to a certain category.

The Sabah Al-Ahmad marine area witnessed a high demand, which raised the prices of chalets at that time by no less than 70 percent, within a short period, as the chalets were witnessing a heavy turnout from the public, due to the travel restrictions related to Covid-19 pandemic at that time, in addition to high liquidity in the market, and there was no outlet other than this sector.

The effect of raising bank interest rates, however, has been confirmed by many real estate professionals to be limited in the residential sector due to several factors, including a high demand and the fact that it will not be subject to the same tariffs as other sectors when it comes to electricity and water.

 

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