New demand boosts Riyadh land prices
Realtors in the Saudi capital Riyadh expect land prices to increase because of high demand from investors who now favor the real estate market over the stock market.
Investors looking to make a guaranteed investment have concluded that real estate is safer than stocks and are pouring millions of riyals into real estate ventures. However, the demand seems limited to certain areas in Riyadh and realtors are finding it difficult to meet it.
At least 70 percent of stock investors have switched to real estate, said Ibrahim Saiddan, president of the national real estate committee. One sq.m. in northern Riyadh costs about SL1,600 ($432), Saiddan said.
Other factors have lead to the increased interest in real estate. More young people are investing in homes for the future and the system of payments has made real estate an attractive market for younger people who have not yet accumulated a fortune.
Investors have called on realtors to expand the areas of construction, especially out of Riyadh but realtors say that the government must improve infrastructure in all these areas before any building is started. –(Albawaba-MEBG)