Arab Today, arab today saudi land prices send housing costs soaring
Last Updated : GMT 20:52:28
Arab Today, arab today
Arab Today, arab today

Saudi land prices send housing costs soaring

Arab Today, arab today

Arab Today, arab today Saudi land prices send housing costs soaring

Riyadh - Arabstoday

Land prices in Jeddah jumped as much as 30 per cent in the past year, pushing home prices up to record levels. A typical villa in Jeddah costs 3,980 Saudi riyals (Dh3,898) a square metre, a 15 per cent increase from a year ago, according to a report by the property consultancy Colliers International. Apartment prices have risen 14 per cent. In many projects, land accounts for 50 to 60 per cent of overall development costs, Colliers said. \"With pressure on land and land prices, it\'s very difficult to build affordable housing to appeal to the majority of the population,\" said Ian Albert, the regional director at Colliers. Because land prices are so high, many of the new projects are catering to high-end buyers. Apartments in towers under construction along the waterfront are priced at between 12,000 riyals and 22,000 riyals a sq metre. Many of those projects are finding it difficult to attract buyers - the majority of the population cannot afford them. A recent study by the consultancy Jones Lang LaSalle found 58 per cent of Saudi households had an average monthly income below 5,000 riyals. \"It is still a price-sensitive market,\" Mr Albert said. Jeddah is a microcosm of the forces affecting all of Saudi Arabia\'s property industry. Land is a commodity, with speculators helping to drive up prices, he said. Despite the size of the country, there is a shortage of developable land. \"Although there is a lot of land, a lot is not accessible by infrastructure,\" Mr Albert said. \"The more infrastructure built, the more land will become available.\" Large portions of developable land are taken up by master-planned developments, which are struggling to attract financing, he said. And international developers still find barriers to working in the kingdom. \"Saudi Arabia has eased the entry requirements significantly,\" Mr Albert said. \"However it is still difficult to attract the right staff.\" In Riyadh, small and mid-size developers account for 85 per cent of projects. Villa prices in Riyadh, the Saudi capital, are up 9 per cent in the past year to 3,150 riyals a sq metre. Apartment prices are up 8 per cent to 2,860 riyals a sq metre. The shortage of supply, as well as the price of land, continues to drive up prices, according to Colliers. \"Market demand is being driven primarily by a rapidly growing, young population seeking solutions for their residential requirements,\" Colliers reported. In the Eastern Province, new buildings are now taller, typically between eight and 12 floors, in large part because of the \"decreasing stock of developable land\" in Dammam and Al Khobar. \"Apartments [in the Eastern Province] are increasing in popularity, in comparison to villas, primarily due to their affordability,\" Colliers reports. Villa prices increased 14 per cent in the Dammam and Khobar areas to 3,510 riyals a sq metre in the past year, while apartment prices jumped 10 per cent to 2,841 riyals a sq metre. New developments in the region - including Al Khobar Lakes, a 2,100-home project developed by a subsidiary of the Dubai developer Emaar - are primarily targeting high-income households, bypassing the pent-up demand for affordable housing. \"This is a typical trend observed throughout the kingdom,\" Colliers reports.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today saudi land prices send housing costs soaring Arab Today, arab today saudi land prices send housing costs soaring

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today saudi land prices send housing costs soaring Arab Today, arab today saudi land prices send housing costs soaring

 



Arab Today, arab today Designer Rania Adel reveals her new collection

GMT 17:59 2017 Monday ,12 June

Designer Rania Adel reveals her new collection
Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Mai Al-Jeddawi presents décor ideas for Ramadan
View News in Arabic - Business: عقارات
Arab Today, arab today
Arab Today, arab today

GMT 09:49 2017 Tuesday ,02 May

Girl barred from Malaysia chess competition

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse

GMT 16:25 2017 Sunday ,04 June

“Suhoor” is basic meal for fasting

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 23:13 2017 Sunday ,18 June

New ransomware virus attacking mobiles in Oman
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday