60% Saudis live in rented houses



RIYADH: ABDULLAH MD AHMED

Published — Friday 26 April 2013

Last update 29 April 2013 7:37 am

| نسخة PDF Print News | A A

Around 60 percent of the nearly 20 million citizens of Saudi Arabia live in rented apartments, according to estimates from Corporate Commercial Real Estate Services (CBRE), the world's largest property services firm.
Saudi citizens have complained about rocketing house rents, notably in major towns and cities. A newly married Saudi, 25-year-old Faisal Al-Dakheel, complained about property prices. "It's impossible to set up a home. How can we manage to get SR 4.1 million to buy a house. This price is for a house in a very ordinary neighborhood, not in a well-off area," he said.
He said it costs between SR 60,000 and SR 80,000 annually to rent an apartment near his workplace. "I cannot pay such an amount, it's impossible. So I had to live in a place far from my work at a cost of SR 26,000," Al-Dakheel said.
There are a number of problems with the housing market in Saudi Arabia, most notably the severe shortage of supply, continuous rise in rental prices, speculation on undeveloped land, and the lengthy process to obtain licenses, experts say.
Last week Custodian of the Two Holy Mosques King Abdullah ordered the Ministry of Municipal and Rural Affairs, municipalities and localities, to hand over all developed pieces of land and plots ready for construction to the Ministry of Housing which will, in turn, distribute them to citizens with construction loans.
The decision is an important step to bridge the gap between supply and demand and reduce the cost of land, according to John Sfakianakis, chief strategist at MASIC Investment Company in Riyadh.
There are reportedly some 4 million sq. meters of vacant plots of lands in Riyadh city. One-fifth of this land is owned by businessmen, who are holding on to it hoping prices will rise, experts say.
The CBRE has said that the Saudi Ministry of Municipal and Rural Affairs has distributed 2.2 million sq. meters as land grants. However, no data exists on how these plots of lands have been exploited.

What's happening around Saudi Arabia

JEDDAH: The Kingdom and Namibia have signed a protocol to establish diplomatic relations between them.According to SPA, the protocol was signed on Tuesday by Saudi Arabia’s Permanent Representative at the United Nations Abdullah Al-Mouallimi and his...
JEDDAH: Official reports reveal nationalization levels of medical and health workers in the Kingdom remain low, with Saudi nationals making up only 21.7 percent of physicians, 31.8 percent of nurses, and 67.4 percent of ancillary staff.According to t...
JEDDAH: The Saudi Food and Drugs Authority (SFDA) will begin receiving clearance applications for medicines and medical supplies, including drugs containing narcotic or psychotropic substances, for Haj missions or other government bodies on Saturday....
JEDDAH: Saudi importers of cattle said the Haj season this year will not see an increase in the price of livestock due to the stability of the local market and the available supply.There are also guarantees from exporting countries that required quan...
JEDDAH: At the upcoming elections the national identity card will be the only approved document used for identifying voters of both genders and allowing voters to exercise their electoral right, provided all statutory requirements are met.In a press...
JEDDAH: Education Minister Azzam Al-Dakhil has spoken of a new education policy which emphasizes the importance of harmonizing admission policies in universities with the needs of the labor market.Al-Dakhil made these remarks during a meeting with un...
JEDDAH: Local bottled water consumption during the summer, Umrah and Haj seasons this year will increase by 10 percent.“This translates into an annual growth rate of between 4 percent and 5 percent,” Rashed Bin-Zouma, a water industry expert, was qu...
RIYADH: Four Saudi secondary students including a young woman from the Eastern Province have received prestigious medals at the 47th International Chemistry Olympiad (IChO), which concluded in Azerbaijan last week.The winners of the four bronze medal...
JEDDAH: The UAE’s decision to lift fuel subsidies beginning in August has raised the possibility of other Gulf states following suit.Economists suggest a wide disparity of prices of gasoline in the Gulf countries will lead to more petrol smuggling op...
DAMMAM: The tourism industry in the Kingdom is witnessing great interest by authorities to develop the archaeological areas, promote their support services and create the best environment for tourism products, said businessman Abdul Mohsen Al-Hokair....
JEDDAH: The ongoing World Circus at north Obhur has brought smiles on the faces of orphans, with its show of acrobats featuring 20 performers and clowns.The orphans of Al-Rawdah district charitable organization said they found the circus entertaining...
RIYADH: The Nepalese ambassador to Saudi Arabia, Udayaraj Pandey, thanked the Kingdom on Thursday as he ends his four-year tour of duty in Saudi Arabia.Earlier in the day, he called on Riyadh Gov. Prince Faisal bin Bandar to pay him a courtesy call a...
RIYADH: Movies produced by young and amateur Saudi filmmakers will be shown on Saudi Television starting in the middle of next week.“The films will be shown daily to encourage young Saudi filmmakers,” said Abdulaziz Fahad Al-Eid, senior broadcaster a...
RIYADH: The King Abdul Aziz City for Science and Technology (KACST) signed a memorandum of understanding on Thursday with the Saudi Electricity Co. (SEC) and Taqnia Energy to launch the first standalone 50MW solar power station at Al-Aflaj.KACST also...
UN Secretary General Ban Ki-moon and Saudi Arabia’s permanent representative to the UN Abdullah Al- Muallami unveiled a beautifully framed old kiswa (covering) of the door of the Holy Kaaba at one of the newly refurbished halls of the world body. The...

Stay Connected

Facebook