Saudi real estate market growing
Saudi Arabia's real estate market estimated at more than SAR 1 trillion is growing at the rate of six per cent annually
It contributes 9.5 per cent to the nonoil GDP.
"So real estate is the Kingdom's second largest economic sector after oil," said Khaled Al-Hamoudi, president of Qassim University, while addressing a seminar in Buraidah on real estate and mortgage finance.
Economic consultant Abdullah Al-Ajaji said the construction of 500,000 housing units ordered by Custodian of the Two Holy Mosques King Abdullah at a cost of SAR 250 billion would help reduce real estate prices and rents.Falah Al-Subaie, one of the main speakers, said the new mortgage law and its executive bylaw contains regulations for real estate finance and development and allows banks to finance real estate projects.
Muhammad Al-Shayie, director of the department to monitor financing firms, said the new law was drafted after studying the main reasons for mortgage crisis in different parts of the world to avoid such problems.Abdul Elah Al-Asheikh, CEO of Saudi Home Loans, said the Saudi real estate sector was still in the beginning stage as most Saudis depend on contractors to build their homes.
"Land accounts for 60 per cent of a home's cost in the Kingdom," he pointed out.According to Al-Asheikh, unemployment among Saudis was one of the reasons that intensified the country's housing crisis.
- Good news for Dubai's real estate as deals boosted by $31 billion
- Sale prices in Abu Dhabi's residential property sector up by 17 percent in H1
- Unholy spending? Luxury leasing options on the rise in Mecca
- Ajman: a viable, more affordable property market?
- Putting things in perspective: how many apartments in the Middle East can Ronaldo buy with his World Cup salary?