Riyadh-Agencies
The real estate market in the Kingdom is witnessing a remarkable boom in conjunction with expectations of accelerating the pace of growth of vital sectors, represented by the retail sector, industry and construction, in the context of the expected upward prospects for the Saudi economy during the first half of the new year. These positive indicators come in light of the multiple development projects targeting various key local sectors to keep pace with the volume of demand and growth, as the construction sector is expected to record a growth of 7.5 % during the current year, which in turn will contribute to enhancing the performance of the real estate sector through major urban projects. This was revealed by a recent specialized study prepared by Injaz based on the latest real estate reports issued in the Kingdom.
Mortgage and Finance
The real estate sector witnessed outstanding performance during the past period, especially in Riyadh and Jeddah in terms of prices and returns, according to the report, driven by many new factors that include, in addition to the increase in demand and the attractive environment for local and regional investments, both the application of the mortgage law and the orientation of the banking sector and investment companies towards supporting the market in addition to the approval of the additional financing loan, which was widely welcomed, which in turn contributed to strengthening the importance of offering land plans projects and developing plans to support witnessed growth, especially in places that witness heavy demand.
The Injaz report expects to explore more promising opportunities within the key growth areas of the real estate sector, driven by the growing trend by local, regional and international investors to expand within the Saudi market and utilize the enormous potential available at all levels.
Real estate sectors
According to the report, the various real estate sectors in the Kingdom, especially in the Riyadh region, are witnessing a remarkable expansion in different directions and at varying prices, in conjunction with the strong performance of the Saudi economy, which achieved positive growth during 2012 with the value of GDP reaching 2.727 trillion riyals. Injaz revealed that there are many important developments within the construction sector, especially the real growth recorded during 2012 at 9.3% according to a report issued by Business Monitor International, which will support the positive expectations of experts and real estate developers during the coming months, which will witness a significant increase in the confidence of investors and customers alike, with expectations to maintain an annual growth rate of approximately 5.9% until 2017.
Al Omran Projects
Omar Al Qadi, CEO and Managing Director of INJAZ Urban Development, said: Building and construction activity will have the largest share of growth during the next three years in conjunction with the announcement of a series of ambitious spending plans associated with a range of new projects and infrastructure improvements, stressing that the implementation of projects to establish schools, primary health care centers, hospitals, transportation projects and municipal projects including intersections, tunnels, bridges, roads, parks, parks, waterfronts and others that have been approved for all cities and regions of the Kingdom will have a significant positive impact on the local urban landscape as a whole.
Al-Qadi pointed out that the increased spending, the approval of the mortgage system and the ambitious development plans will be among the most prominent positive factors influencing the consolidation of the Kingdom and Riyadh as a first-class investment destination, stressing Injaz's commitment to continue providing distinguished solutions aimed at meeting the growing demand for housing through the development of infrastructure within a range of pioneering projects to serve the community and the real estate renaissance in the Kingdom.
