Saudi housing projects ‘might reduce rents’
Riyadh, June 6, 2014
Saudi Arabian residents are awaiting the completion of the Ministry of Housing’s projects, which is expected to contribute to reducing of housing units in the kingdom’s major cities, said a report.
The government projects will reduce the high demand of housing units and increase the supply in the local market, said the Arab News report.
"Housing units' prices are still high due to low supply. However, the housing projects of the Ministry of Housing will increase the supply in the Saudi market and force the housing unit owners to reduce their prices,” Abdullah Al-Ahmari, member of the Real Estate Committee at the Jeddah Chamber, was quoted as saying.
"The gap between demand and supply and the consequent high rentals can be expected to last another three years by which time the ministry would have achieved its target of increasing supply of housing units in the kingdom substantially to take care of the demand side. And this will result in stability in the housing sector."
The ministry has signed agreements to design 82 housing project in preparation to invite tenders this year. The projects are in the Makkah region, Jeddah, Rabigh, Raniya, Taif, Khulais, Yanbu and Mahad, said the report.