Riyadh warehouse prices: does the apparent 10.7% rise hold up?

N

NeatStone

Property investor
I am trying to decide whether the apparent 10.7% price movement in Riyadh warehouses is meaningful or just an artefact of a small sample. The listings I gathered run from SAR 2,115,000 to SAR 3,172,000, with median marketing time near 78 days. Condition makes the average quite noisy.

The part I cannot settle is service charges. Are buyers negotiating those costs, adjusting their offer to account for them, or simply moving to another listing? Agents have given me conflicting explanations, including seasonality. What would you compare next before treating the 10.7% as real?
 
I would not rely on the 10.7% until you have recent completed sales rather than asking prices. Also separate warehouses by condition and neighbourhood boundaries; otherwise one renovated or better-located property can distort a small sample. For service charges, first establish exactly what each figure covers and whether every listing reports it consistently.
 
One more missing piece: how much stock was withdrawn during those 78 days? A listing disappearing is not necessarily a sale. New-listing volume and the timing of price cuts would help show whether sellers are achieving higher prices or merely holding ambitious asking prices for longer.
 
I partly disagree that service charges are secondary here. Even if the advertised price is comparable, a recurring charge can change what a financed buyer is willing or able to offer. Seller motivation matters too: two similar warehouses may produce very different negotiations if one owner needs a quick transaction. I would record charges and financing status separately rather than trying to fold everything into one average.
 
A practical next step would be a simple comparison table: original asking price, latest asking price, days marketed, condition, narrowly defined area, stated service charges, and whether the property sold, remained listed, or was withdrawn. Then compare only like with like. If the 10.7% remains after excluding withdrawals and major condition differences, it becomes a stronger observation; until then, I would describe it as an asking-price signal rather than market movement.
 
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