Experts: Saudi real estate market to recover
Saudi real estate experts estimate that as a result of the recent raise in the public sector employees' wages and of the allocating of SR9 billion ($2.4 billion) to the Saudi Real Estate Fund, the property market will recover following an eight month long recession. During this period, local investors turned their money to the stock exchange, the Saudi newspaper, Al-Watan reports Wednesday (August 31, 2005).
These experts expect that the demand will focus on housing lands, apartments for sale, and residential towers, which are sold by installments. These experts claim that civil servants will like to turn their extra income to fixed assets for investment or housing purposes.
The manager of Tayba real estate office, Fahed al-Radadi, told the newspaper that the real estate market will see a recovery after the recession, which caused a 50% decrease in prices. Al-Radadi estimates that the activity in the market will not lead to an unreasonable rise in the prices, since real estate prices reached their peak during 2004 and the market will not be able stand higher prices.