High Growth Rate Led By Saudi Private Sector Increases Demand For Luxury Properties
Emerging markets are still experiencing growth despite some concerns about inflation, but the Saudi economy stands on the other side of the equation due to strong fundamentals that makes it one of the most competitive investment environments in the Middle East, according to the World Bank, which also finds that the real estate sector is on its way to grow and prosper.
Recent studies suggest that the real estate market in Saudi Arabia is on the verge of a huge recovery since the Saudi economy is supported by government stimulus and also bank loans are back to flow, while there is an appropriate environment for the building of large real estate projects to keep pace with market demand, which includes quality real estate projects for luxury residential and office units.
Amid this optimistic outlook there is an emergence of major projects that add value to the real estate sector in the Kingdom and opens promising new horizons for investors in the real estate sector, especially in the luxury office segment. One of the most notable projects that will determine the future of the sector is The Headquarters Business Park, which is being developed by Aldar Alkhasa.
The exceptional quality of the project is the result of the high degree of professionalism that has been adopted in the design and construction of the towers, reflecting a new dimension of excellence in the use of advanced technology to bring to reality concepts that are unprecedented in structural engineering and construction.
Expressing his optimism, Mr. Essam Fakeeh, Executive Partner of Aldar Alkhasa, stated that the recovery of the Saudi economy led by the private sector and the Kingdom’s success in attracting capital and foreign investment are positive factors that help the growth of the real estate sector.
He went on to say: “The total investment in the Kingdom’s real estate sector is expected to surpass USD 400 billion this year, according to a Jones Lange Lasalle report, which clearly indicates that the Saudi real estate sector is qualified to become one of the most profitable markets in the region with a stable flow of liquidity in real estate development companies due to pioneering projects like ours.”
Recent studies conducted by Global Investment House shows that the Saudi real estate sector will maintain a 5-7 percent growth rate until 2012, which is being driven by strong continuous demand for properties.
Discussing Aldar AlKhasa’s flagship project, Mr. Kakeeh said: “The Headquarters Business Park is a concept that will take office owners and visitors into the business environment of the future – the new world of smart buildings designed to maximize the efficiency of the working environment in this important economic cycle. Our project brings to Jeddah the most technologically advanced, ultra luxurious office accommodation and 45 percent of the suites have already been sold to the elite of the Saudi business community.”
Mr. Fakeeh concluded by saying “The Headquarters Business Park is one of the few major projects that continued unimpeded during the global financial crisis and we are intensifying our efforts to complete construction work in “The Headquarters Business Park” by mid 2012, to take its place as the most prestigious business destination in the entire Middle East.”
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