Real Estate

Having avoided the major boom and bust cycles of its Gulf neighbours, Saudi Arabia’s real estate sector is considered relatively stable. For several years, and certainly since the global financial crisis, the sector has been viewed as a safe haven for local capital; prices in the market have held firm and returns have been solid. With demographic trends and a solid economic base supporting a sustainable housing market, Riyadh and Jeddah remain strong, with rental prices growing between 8% and 15% in 2011, making these yields some of the highest in the world. Changing preferences among the under-30 segment, which makes up 60% of the local population, are reshaping the local housing market. At the same time, the government is attempting to energise the mortgage market with a new law offering legal guarantees and recourse for lenders. With greater confidence in foreclosure procedures, banks are also more likely to support the sector.
Cover of The Report: Saudi Arabia 2013

The Report

This chapter is from the Saudi Arabia 2013 report. Explore other chapters from this report.