Real estate market flourishing in 2009.

The real estate market in the Kingdom has stepped up its activities by concluding a number of real estate deals worth a total of SR 948 million, thereby reflecting considerable levels of liquidity.

The deals that have been concluded in Riyadh and Jeddah include open land as well as a commercial tower at Cairo Square, in Riyadh City, in addition to open land on the south Corniche.

These deals have come with the beginning of the fourth quarter of the current year, after conclusion of a number of real estate deals before the month of Ramadan, led by a government organization. The deals related to the eastern part of Riyadh and north of Jeddah, worth over SR 320 million in value. In addition, unprecedented demand was registered for purchase of residential investment buildings.

The residential buildings were worth SR 3 million to SR 10 million in value, leased through one contract in order to make it easy to recover the investments involved.

The old Riyadh districts such as Al Malaz, Al Sulaimaniyah, Al Rawabi, Al Riyan, Al Suwaidi, Al Aziziyah, Al Olaya old and Al Roudah (1) witnessed increased activity involving deals for buildings comprising residential units earmarked for lease or renting. However, the eastern districts of Riyadh and the developing districts in the west and north of the city witnessed deals for residential buildings, in which units were earmarked for ownership.

The individual and corporate activity was centered on construction of residential buildings, in view of their attractiveness for investment and ease of sale either as complete buildings or as individual units for rent or ownership.

With the beginning of the fourth quarter of the current year, a number of those dealing in real estate and observers of the market expect that trading activity would pick up particularly in view of the announcement pertaining to the issue of the real estate mortgage law.

A recent report in the press, however points toward the danger of escalation of real estate units' prices after the issue of the mortgage law, even though the law is very important and would make it easy for the citizens to own their own houses.

Saudi Economic Survey. All rights reserved.

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