HC Brokerage & Research has raised its forecast for real estate finance growth in Saudi Arabia from 25 percent to 35 percent from 2010 to 2014.

The HC report attributed the increase to several factors, including amendments to the structure of the Ijarah program and the introduction of new facilities to the financing sector, such as the rent-to-own option.

<In addition, the growth in real estate financing is supported by guarantees issued by the Real Estate Fund for Development (REFD).

The HC report predicts that the demand for residential units in Saudi Arabia will reach 275,000 units this year and will grow to 206,000 units in 2014.

HC's report predicts that the demand for residential units in Saudi Arabia will reach 275,000 units this year and will grow to 206,000 units in 2014.

As for companies operating in the Saudi real estate sector, HC recommended buying shares of Dar Al-Arkan, but reduced the company's target price by eleven percent to sixteen riyals and ninety fils per share.

The report cut the target price of the company by eleven percent to sixteen riyals and ninety fils per share. The report lowered its recommendation on Al-Aqaria from Buy to Hold, lowering the company's target price by about 25 percent to 26.2 riyals.

The monthly report of the Saudi Arabian Monetary Agency (SAMA) indicated that bank lending to the private sector increased by 4.5 percent during June of this year compared to the same month of last year, bringing the volume of lending to the private sector in Saudi Arabia to 760 million riyals, a clear indication of the pace of growth of lending in Saudi Arabia.

The report cut its recommendations on Real Estate Company from “Buy” to “Hold”, lowering the company's target price by about 25 percent to 26.2 riyals.