Saudi Arabia will have an estimated 6.2 million housing units in the next 10 years amid a spurt in demand for residential property across the Kingdom, according to Saudi-based Jiwar Real Estate Management & Marketing.

Jiwar, a leading real estate company in the Gulf region and the marketing arm of the Saudi Bin Laden Group, said that infrastructure development across the country had been in an upswing, with various projects collectively valued at around SR1.76 trillion ($469.5 billion).

The Saudi group also announced plans to establish its new real estate development unit Jiwar Real Estate Development Company with a paid-up capital of SR250 million ($66.6 million) aimed at capitalising on the strong market demand.

The development of Jiwar’s new venture is in line with the company's commitment to support Saudi Arabia in its vision to become one of the top 10 most competitive investment destinations in the world, said a top company official.

Dr Saleh Bin Abdullah Al Habib, CEO of Jiwar Real Estate Management & Marketing, said: 'Jiwar will particularly focus on developing premium-quality, affordable housing projects that target the middle income group across the country.'

Jiwar has identified Riyadh, Jeddah, Makkah, Madinah, Dammam and Al Khobar as the top residential markets in the Kingdom, with rented housing units accounting for 83 per cent of the total market.

'Up to 60 per cent of Saudi's residential real estate market belongs to the affordable housing segment, while demand is expected to remain high within the next years, representing a significant business opportunity for our planned venture,' he remarked.

'Jiwar Real Estate Development Company will be fully committed to offer a complete range of real estate services and cater to the entire project cycle, from site selection, conceptualisation, development, through to handover to end buyers,' he added.

Dr Al Habib said the kingdom will have a total of 4.6 million residential units this year. 'But with demand remaining high over the next few years this will surge to hit 6.2 million units by 2020 thus creating long-term growth prospects for the real estate sector,' he added.

On the new venture, the company chief said Jiwar Real Estate will capitalise on the cumulative market experience of Jiwar particularly in the area of sales and marketing, giving the new business venture a significant competitive advantage.

Jiwar Real Estate Management & Marketing is currently actively involved in the Abraj Al-Bait Towers being developed by the Saudi Bin Laden Group in Makkah. The 595-metre tower, which will occupy a floor area of 1.5 million sq m, is set to become the world’s tallest and largest hotel.-TradeArabia News Service