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Saudi property scene ...... additional steps needed to streamline
the sector.

Saudi Arabian property prices 'may fall 40pc next year'

RIYADH, October 16, 2014

Saudi Arabia could see a 30 to 40 per cent drop in property prices in 2015 following the recent government decision to impose fees on vacant lands and cancel all bogus land deeds, said a report.

The government must take additional measures to streamline the real estate industry, reported the Arab News, citing two leading regional property experts.

The Housing Ministry’s delivery of its projected lands and loans to eligible citizens is likely to play a crucial role in stabilising the property market, remarked Abdullah Al Ahmari, the head of the Real Estate Evaluation Committee at Jeddah Chamber of Commerce and Industry.

He pointed out that the current situation in the kingdom's real estate sector was only a market correction, the report stated.

Al Ahmari said the real estate market had seen some recessive behaviour for two years because a majority of citizens were not buying property units due to soaring prices.

All official decisions have a direct impact on the market, particularly those related to the imposition of fees on vacant lands, he added.

Property prices, he stated, are expected to fall considerably after the ministry delivers the lands and loans to eligible citizens.

Another expert Abdulrahman Al Saad stressed the need to link land registration clerks to licensed property firms, said the report.

"The new package of decisions and measures, if fully applied, would inevitably reduce prices in the outskirts of cities," he added.
 




Tags: Saudi | property | land |

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