Saudi’s Real Estate Prices Should Not Grow Further
“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.
“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.
“When I look at the pricing appreciation of real estate in Saudi Arabia over the last fifteen to twenty years, I see we have had reasonable growth. When I look at the past five years, I see huge growth…. (However,) there is a large gap in terms of affordability. We hope the government will interfere and help find tools and vehicles to reduce this gap.”