The Saudi Minister of Economy and Planning, Dr. Khalid bin Muhammad Al-Qusaibi, has estimated the demand for housing in Saudi Arabia to grow to 1 million apartments in the 8th 5-year development plan, of which 270,000 apartments are to bridge the shortage in the 7th plan and 730,000 apartments to bridge the shortage in the 8th plan itself.
The Deputy Minister for Industrial Affairs, Dr. Osama Abu Gharara, said that the real estate shortage in Saudi Arabia requires building 4.5 million residential units by 2020, which will lure additional investments into this sector. Mr. Gharara estimates the value of the whole Saudi real estate market at SR 900 billion with an average 20% rate of return.
