List of all articles filed under “saudi-arabia-real-estate” category.
Amid ample demand from an ever young and ambitious population, property in the oil-rich kingdom is booming. But the run for climatised square meters in the desert adds fuels inflation in the biggest Gulf Arab country.
The Kingdom of Saudi Arabia and oil are some of the oldest synonyms in contemporary history. But the kingdom has more to offer than black gold, and the government in Riyadh is working tenaciously to diversify the economy. “If you compare it by GDP, oil represents 85 percent in Saudi Arabia,” says Abdulrahim Al-Zamil, Chairman of the multi-industry conglomerate Zamil Group.
“The Saudi market is currently facing a very short supply of real estate properties, which will fuel the demand over the next few years. The gap we need to fill about 1.2 million units over the next 5 years, which shows you the size of our inventory and the potential for growth within the market,” says Majed Al Hogail, Managing Director of Rafal Real Estate Development Co.
“The question is whether the residential prices are affordable. Currently with the prices as they are, there is a huge difference between property prices and people’s income… Over the last 3 or 4 years, the pricing acceleration was quite aggressive so I do not think we shall see much higher prices,” says Majed Al Hogail, Managing Director of Rafal Real Estate Development Co.
“Rafal Real Estate began nearly six years ago. However, the shareholders of the company have more than 60 years’ experience in terms of business conduct in Saudi Arabia. The differential we have is that we are community innovators and not homebuilders,” says Majed Al Hogail, Managing Director of Rafal Real Estate Development Co.
“The land is too expensive. Land should be a maximum of 30% of the unit cost but in Saudi it is nearing 50%. Land is available but it’s too expensive,” says Mohammad Al Saja, Chairman of Mizat Development Company.
“In the real estate market in Saudi in the last three to four years, the prices doubled or tripled. As you know, the population growth in the country is becoming very high. This is one of the reasons that suddenly the government realized there is high demand for land, or in other words, a high housing demand,” explains Mohammad Al Saja, Chairman of Mizat Development Company.
“The project we are involved in consists of around 100 residential units – villas. It starts from 350 up to 600 square meters of land. It was designed carefully, in a way that would fulfill a mid to upper class Saudi family’s requirements,” explains Mohammad Al Saja, Chairman of Mizat Development Company.
Abdullah Saud Al-Rashoud, CEO of Blominvest
I think the capital markets started very early in Saudi, maybe in the 60’s or even earlier than that. It was very simple, very preliminary, there were no complications at all, and there were no rules or regulations.
Al Saedan Real Estate is one of the leading real-estate companies in Saudi Arabia. The company has a strong expertise in master-plan developments, land development, building commercial and residential centers, selling and buying local and international real estates, providing consultation in real estates, and providing valuation and estimation services. Al Saedan is an international real estate company with projects in Saudi Arabia, Tunisia and the United Kingdom.
