*Abdulmohsen al-Qasim...
The beginning of the rise in real estate prices was from 2008 until it peaked in 2014, land prices rose in some places to three and four times the price, so housing prices rose dramatically
Before 2008, for example, the price per square meter for residential land north of Riyadh, specifically south of King Salman Road and west of Abu Bakr Road. It did not exceed 500 riyals and now it has reached two thousand riyals.
Real estate is a commodity like all commodities that inflate and rise with the days, such as cars and food items, all of which have risen to many times their prices decades ago
The financial rule is that currencies go down and assets and goods go up over time. Some currencies have even reached zero, in some countries that have experienced economic disasters and wars - God protect us from them - and whoever put his money in real estate and assets is the one who preserved his money in those stricken countries, and this is an added value to the property.
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After the Ministry of Housing's recent announcement to raise the housing loan from 500 thousand to 640 thousand riyals, for military personnel, retirees, and fifty-year-olds, some places rose and the property recovered a little...
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Now after this brief explanation of the current real estate cycle that extended for about six years, where will real estate prices go - God willing, especially residential, the focus of this newspaper article?
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In summary, the decline in residential land prices and what may happen in the future will be offset by a significant increase in the cost of construction that may exceed the rate of decline in land, so the value of the cost of construction will increase, and therefore housing prices will increase in the future, and God knows best.
- Investor, member of real estate committees.
