Docstoc

Understanding Real Estate In Kingdom of Saudi Arabia

Document Sample
Understanding Real Estate In Kingdom of Saudi Arabia Powered By Docstoc
					Understanding Real Estate In Kingdom of Saudi Arabia
                                     The Kingdom of Saudi Arabia is seeing
                                     substantial action in real estate
                                     auction in a bid to draw attention of
                                     more real estate developers, land
                                     dealers and investors. Recent industry
                                     reports reveal that ‫ ش قق تملي ك ج دة‬and
                                     ‫ ش قق تملي ك الري اض‬offers some of the
                                     world’s best investment opportunities.
                                     This is because of the strong domestic
                                     housing demand, an attractive project
                                     pipeline and an expanding hospitality
                                     sector.

                                    If you look at the astonishing figures,
then you will be surprised to see how the Government’s efforts have
resulted in massive growth in real estate investment. With more than US$
36 billion of FDI and over US$ 500 billion of real estate projects already
underway, the Kingdom of Saudi Arabia presents some of the most
lucrative and accessible opportunities for regional and international real
estate investors.

Investment in real estate industry is one of the most attractive options for
any investor because it gives higher capital appreciation and there is an
option of generating fixed income by means of rent. Finding a house
property is an investment of a lifetime for many people and thus it is
always a very difficult decision as there are various factors, which are to
taken into consideration. Saudi Arabia’s young population is filled with first
time homebuyers. The population growth is 2% annually and about 45%
of the country’s population is below 20 years old. Moreover there are 5.5
million expat workers in the country as well. This sharp rise in population
figures is causing housing demand to outstrip the supply. But as Saudi
Arabia is experiencing a bonanza from high oil prices, we see positive
ripples of it in the economy especially real estate sector.

Saudi Arabia’s unprecedented real estate boom is reflected in the progress
in ‫ ش قق تملي ك ج دة‬and ‫ .ش قق تملي ك الري اض‬With favorable demographics and a
strong economy, both these cities are performing strong in the real estate
segment.

In the past year, if we look at Jeddah, there was a 15% rise in average
sales price of single-family dwellings i.e. villas and duplexes to SAR 3,980
(US $1,061) per sq. m., while the average sales price of multi-family
dwellings i.e. apartments rose by 14% to SAR 2,450 (US $653) per sq. m.
In the capital city of Riyadh, things are no different. There was a 9% rise in
the average price of single-family dwellings i.e. villas and duplexes, to SAR
3,150 (US $840) per sq. m. Likewise, there was an 8% rise in the average
price of multi-family dwellings i.e. apartments to SAR2,860 (US$762) per
sq. m..

				
DOCUMENT INFO
Shared By:
Stats:
views:7
posted:1/25/2013
language:
pages:1
Description: http://www.shoqah.com - Investment in real estate industry is one of the most attractive options for any investor because it gives higher capital appreciation and there is an option of generating fixed income by means of rent.