The demand for apartments and small-sized villas in Riyadh, Saudi Arabia, remained robust in 2015, but the sale prices of apartments and villas were subdued, said a report.

The waiting period in residential compounds ranged between two to six months, with the highest being registered in class B compounds, reported the Saudi Gazette, citing a study by leading audit and advisory firm KPMG.

On the occupancy front, market-wide figures touched 87 per cent with a steady increase of three to five per cent year on year over the past three years, it stated.

The overall future outlook of Riyadh's residential sector would remain positive, as approximately 3,500 units are expected to enter the market in the next three to four years, according to the report.
 
It is anticipated that the majority of the supply will be targeting the rental housing segment. The report also highlighted that the recently announced white land tax on undeveloped residential and commercial urban land would free up developable land and boost tax collection.

In addition, it is also anticipated that property prices may witness some correction in line with their fair values, stated the report.

According to KPMG, the nod to the national transformation plan reflects the government's determination to enhance the security of real estate sector.

The Saudi market will witness new types of real estate investments, particularly in entertainment and tourism sectors whereas the residential products will be diversified in order to serve Saudi consumers, it added.