Saudi Arabia Housing Sector Outlook

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					RNCOS                      Saudi Arabia Housing Sector Outlook
Online Business Research
RNCOS                                                              Saudi Arabia Housing Sector Outlook
Online Business Research




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                                 © Saudi Arabia Housing Sector Outlook
                                                RNCOS, 2010
                                                  Edition 2.0
                              All rights reserved. This publication is protected
                           by copyright. No part of it may be reproduced, stored
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RNCOS                                                                       Saudi Arabia Housing Sector Outlook
Online Business Research




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RNCOS                                                                                             Saudi Arabia Housing Sector Outlook
Online Business Research




                                                                 Table of Contents

1.      Analyst View ........................................................................................................................................7
2.      Demand Drivers ..................................................................................................................................9
     2.1     Economic Growth .........................................................................................................................9
     2.2     Petro Dollar ................................................................................................................................11
     2.3     Booming Population ...................................................................................................................12
     2.4     Household Size ..........................................................................................................................13
     2.5     Real-estate Financing ................................................................................................................14
3.      Housing Market Overview ................................................................................................................15
4.      Saudi Arabia Housing Market Outlook - 2012 ................................................................................18
     4.1     By Ownership .............................................................................................................................19
     4.2     By Province ................................................................................................................................20
     4.3     By Type ......................................................................................................................................23
     4.4     By Construction Material ............................................................................................................24
     4.5     Investments ................................................................................................................................26
5.      Housing Demand Analysis ..............................................................................................................27
6.      Mortgage Law and its Implications .................................................................................................29
7.      Future Residential Projects .............................................................................................................32
8.      Key Players........................................................................................................................................34
     8.1     Makkah Construction and Development Company....................................................................34
     8.2     Red Sea Housing Services ........................................................................................................35
     8.3     Arriyadh Development Co. .........................................................................................................36
     8.4     Dar Al Arkan Real Estate Development Co. ..............................................................................37
     8.5     Saudi Real Estate Company ......................................................................................................38




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RNCOS                                                                              Saudi Arabia Housing Sector Outlook
Online Business Research




List of Figures:

Figure 2-1: Nominal GDP (Billion SR) and Real GDP Growth (%), 2003-2009 ............................................9
Figure 2-2: Earning from Crude and Refined Products Export (Billion SR), 2003-2009 .............................11
Figure 2-3: Saudi and Non-Saudi Population (Million), 2003-2009.............................................................12
Figure 2-4: Average Saudi and Non-Saudi Household Size (2004 & 2015) ...............................................13
Figure 2-5: Real-estate Finance (Billion SR), 2004-2009 ...........................................................................14
Figure 3-1: Distribution of Housing Stock in Major Cities (‘000), 2000, 2004 & 2007 .................................16
Figure 4-1: Share of Housing Units by Tenure (2007) ................................................................................19
Figure 4-2: Housing Structure by Type in Jeddah (‘000 Units) ...................................................................21
Figure 4-3: Share of Housing Units by Construction Material .....................................................................24
Figure 4-4: Real-estate Investment (Billion US$), 2009 & 2010 .................................................................26
Figure 5-1: Forecast for Housing Units Demand (Million Units), 2010-2013 ..............................................28
Figure 6-1: Mortgage Law and Trend Shift in Demand ...............................................................................30
Figure 6-2: Forecast for Real-estate Finance (Billion SR), 2010-2013 .......................................................31




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RNCOS                                                                                Saudi Arabia Housing Sector Outlook
Online Business Research




List of Tables:

Table 3-1: Residential Real Estate Market Outlook ....................................................................................15
Table 4-1: Status of Housing Industry under Various Developments Plans ...............................................18
Table 4-2: Number of Housing Units by Type .............................................................................................23
Table 4-3: Number of Housing Units by Administrative Area and Construction Material (2007) ................25
Table 5-1: Housing Units Demand Under 8th Development Plan (‘000), 2005 to 2009 .............................27
Table 7-1: Major Developments Scheduled for Completion in Residential Segment .................................32




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RNCOS                                                                       Saudi Arabia Housing Sector Outlook
Online Business Research




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DOCUMENT INFO
Description: "Despite a big slump in the economy, Saudi Arabia continues to attract massive investments and remains favored destination for real estate developers around the world. The real estate investment is expected to touch around US$ 400 Billion in 2010, up by nearly 33% from 2009. Residential real-estate will account for the bulk of investments. The recovering oil prices, continued government stimulus and gradual relaxation of bank lending are some of the important factors attributing to the growth of the residential real-estate market in the Kingdom. Although the Kingdom is witnessing huge developments in the housing construction, the housing market still suffers with large demand-supply gap due to rapid expansion of expatriate population along with domestic population and declining household size. Moreover, majority of the Kingdom’s populace does not have their own houses and live in rented houses. Resultantly, Saudi Arabia will need to construct over 1.5 Million houses by 2013. This demand could further escalate if the mortgage law to ensure easy financing gets through in the country's legislature. “Saudi Arabia Housing Sector Outlook” provides extensive research and objective analysis on the growing housing industry of Saudi Arabia, its components and supporting financing structure. This report helps clients to analyze the factors critical to the success of the housing industry in Saudi Arabia. Detailed data and analysis help investors, financial service providers and global real estate players navigate through the latest trends in the Saudi Arabian housing industry. The forecasts given in this report are not based on a complex economic model, but are intended as a rough guide to the direction in which the market is likely to move. The forecast is based on the correlation between past market growth and growth in base drivers, such as household size, disposable personal income, GDP growth and long-term interest rates, competitive structure, government support,
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