Saudi real estate market will grow in 2019
Saudi Arabia has been witnessing a healthy development in 2019 with the increase in property prices over the past few years.
Saudi Arabia’s Al Fozan & Partners adviser Islam Albayaa says the Saudi real estate market will grow with increasing real estate prices. Attempts by the public and private sectors to increase this sector are the main reason for remarkable growth.
Albayaa explained that this correction is expected to continue over the short-term, but the market will pick up in the medium to long term, given the recent government initiatives to incentivise the sector, particularly the Ministry of Housing initiatives.
Ministry of Housing, in November, 19,500 housing units to provide citizens ‘Sakani’ programme launched. In addition, according to KPMG, the establishment of the Riyadh Metro is a support for property developers. Prices of developments near metro stations increase.
Other property boosts came in the form of investments by the kingdom’s state-owned Public Investment Fund (PIF), which launched several mega projects that are expected to contribute to boosting the property sector. Among these PIF-funded projects are the $500-billion city NEOM, along with Qiddiya, and the Red Sea project.
Albayaa added: “These gigaprojects will promete the property market in the newly developed locations especially the second home concept in the Kingdom. Moreover, some of those projects will introduce new asset classes that will increase the real estate investment alternatives.
Fulya Altunyay/ [email protected]