Categorized | International

Saudi Real Estate Market Set for Success

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With increased government spending on housing, job creation, and other economic measures, the Saudi Arabian real estate market is set to exponentially grow. King Abdullah has made it clear that he plans to invest enough money to provide for the construction of over two million homes over the next five years.

With the significant increase in supply, many analysts are wondering how the Saudi real estate market will be affected. Many experts believe that, with the increased spending, demand will also rise, and the market will thrive under such conditions. The King’s intentions with the promised stimulus are to stabilize the market, as the growing population has led to increased demand and prices. With the government stimulus, there is hope that the Saudi Arabia kingdom will correct the current housing shortage, and provide enough supply to meet the excessive demand.

One of the biggest obstacles to growth in Saudi Arabia is the lack of any kind of mortgage law. It is actually the least developed mortgage market in the GCC. Less than thirty five percent of Saudis actually own a home. This increase in government spending should make it possible for the lower income, and middle incomes classes to buy a home.

In addition to increasing funding to real estate growth, the Saudi government is also putting more money into energy production. More power plants will be constructed, and existing ones will be expanded. With an increase in the number of homes in the kingdom, there will be an increase in the demand for energy. The Saudi government is hoping that they will be able to meet the new demand by providing enough money to expand the current energy production market.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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