Value of ongoing and planned real estate projects for Saudi Arabia estimated at $586bn

Tuesday, 10 November 2009 14:52

The value of ongoing and planned projects in the Kingdom of Saudi Arabia are estimated at $586bn, according to a report by marketresearch.com.

The estimated amount represented around 128% of KSA’s GDP.
While office rental prices have held up in Riyadh, several supply issues have placed pressure on prices in Jeddah. However, there is a consensus that these prices will recover later this year or early next year.

Affordable housing has also emerged as a key opportunity in KSA. This is being driven by demographics and the health of the Saudi economy in relation to other Gulf Cooperation Council (GCC) countries. Saudi Arabia is currently embarking on much needed reforms, introducing new laws as well as a regulatory framework to ensure that the growth of its real estate sector remains healthy and viable. KSA is also expected to introduce a mandatory escrow account/guarantee system for off-plan sales.

With this in mind naseba - a business information company that produces, promotes and hosts upper-level executive B2B congresses and forums - presented the second annual Real Estate Investment World Summit (REIS). The event took place from November 9th - 10th at Al Faisaliah Hotel, Riyadh, Saudi Arabia.

The two-day summit focused on education and networking and explored investment opportunities in real estate, taking into consideration the global economic climate.

It brought key government bodies, high net worth individuals, property developers, private and institutional investors, financial institutions and family business owners together.

The event also highlighted the latest trends and issues facing the property sector. These include the international investment climate, Islamic financing - along with its risks and returns - investor sentiments, transparency of laws and regulations and investment in the Middle East and Africa with the major focus being on the property market.