House prices likely to drop 30% in Jeddah

Updated 24 October 2015
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House prices likely to drop 30% in Jeddah

JEDDAH: Prices of apartments, houses and land are expected to drop by 20 to 30 percent in Jeddah next year, a study has found.
Developers are expected to deliver 15,600 residential units over the next three years in different regions of Jeddah, which will further bring down prices, local media reported Thursday, citing the survey.
The study has attributed the decline in real estate prices to the mortgage plans currently in place, drop in oil prices and the planned introduction of a new system to impose fees on vacant plots of land.
The survey said the real estate market in Jeddah will witness, by the end of 2015, a decrease in the total value of transactions by 19.9 percent, at the level of almost SR187.9 billion compared to the corresponding period last year, that is SR234.5 billion.
According to the study, the real estate sector will enter the year 2016 with a new agenda as it will coincide with low oil prices and prospects of a deficit in the Kingdom's budget. This will be in addition to the implementation of the real estate regulations to repay 30 percent of the mortgage, canceling the deeds of expanded areas of land, delay in some projects of the Housing Ministry and the imposition of fees on vacant plots of land.
The study noted that the coming three years will witness the delivery of 5,200 apartments in land to the south of the sports stadium, and another 10,500 apartments at the housing project located behind the Prince Fawaz project. This will increase supply significantly.
The study concluded that the property sector in Jeddah increased tenfold between 2006 and 2013. Real estate experts have forecast the decline in residential land prices to be not less than 20 percent, while the decline in residential buildings by 10 percent, and around 7 percent in small villas.


Saudi Arabia, South Korea reach agreement on visas

King Salman chairs the Cabinet session in Riyadh on Tuesday. (SPA)
Updated 16 January 2019
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Saudi Arabia, South Korea reach agreement on visas

  • Cabinet OKs air transport pact with Indonesia

JEDDAH: The Saudi Cabinet met to discuss a series of national and global developments on Tuesday, in a session chaired by King Salman.

At the forefront of the agenda was the escalation in tensions between Israel and Hamas along the Gaza border, and the continuing encroachment on Palestinian land by Israeli settlers in the West Bank. The Cabinet responded by demanding that the UN Security Council intervene. King Salman also relayed to ministers the outcome of his talks with US Secretary of State Mike Pompeo, which covered many regional issues.

The minister of media, Turki bin Abdullah Al-Shabanah, announced that after reviewing proposals from the Ministry of Foreign Affairs and a decision from the Shoura Council, a memorandum of understanding between the government and the Republic of Korea on granting visit visas had been agreed upon.

The Cabinet approved the amendment of the air agreement on regular air transport between Saudi Arabia and Indonesia.

The Cabinet, meanwhile, praised the progress of the 2025 Sustainable Agricultural and Rural Development Program, aimed at enhancing farming techniques by promoting sustainable water and renewable energy sources.

They also discussed the framework in Vision 2030 and the National Transformation Program 2020 for building a sustainable renewable energy sector, reiterating aims to lead global renewable energy developments over the next decade, and create projects such as the wind-powered plant at Dumat Al-Jandal, as part of the King Salman Renewable Energy Initiative.

In a statement, though, Al-Shabanah said: “The Cabinet discussed the announcement made by the minister of energy, industry and mineral resources about the Kingdom’s oil and gas reserves, which highlighted the importance of Saudi Arabia as a secure source of oil supplies in the long term.”

He added, in closing, the Cabinet’s praise for the efforts of Saudi security forces in the tracking and arrest of seven people in Qatif, which foiled a planned terrorist attack.