Real Estate

Benefitting from rising incomes and a youthful, growing population, Saudi Arabia’s real estate sector has seen steady expansion in the past decade. Although this increase has been more modest than in its GCC neighbours, it is clear that strong demand for residential real estate will continue over the long term thanks to the country’s demographics. In the short term the hospitality and office segments may face a surfeit of supply and a shortage of demand with major new real estate developments in the pipeline. On the residential side rents are stabilising, but tenants face financial obstacles to home ownership. However, the central bank’s announcement that it will allow specialised mortgage companies to increase their contribution to home financing to 85% will greatly improve access to home loans.

This chapter contains interviews with Majed Al Hogail, Minister of Housing; and Bader Al Saedan, Managing Director, Al Saedan Real Estate.