Rent hikes make life hard for young tenants

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Updated 08 March 2013

Rent hikes make life hard for young tenants

Young people looking for reasonably priced flats in Jeddah are seeing their dreams dashed as rents continue to soar, with two- and three-bedroom apartments now fetching SR 30,000 and up.
There is an acute housing shortage in Jeddah. Real estate agents say that available housing units in the city do not exceed five percent of all units in the city.
This has resulted in two-room apartments going for a minimum of SR 28,000 a year and four-room apartments going for more than SR 40,000.
Muhammad Salah, a young Yemeni living in Jeddah, said, “I’m looking for a four-room apartment with a reasonable price so that I can move in when I get married next month. I’ve been looking for four months but without any luck.” Salah blames landlords’ self-indulgence for the lack of affordable apartments. In the past, he said, it was no difficult to find a four-room apartment for no more than SR 20,000.
“Now,” he said, “landlords are cashing in on the huge demand for residential apartments.” A committee from JCCI found that apartment sales in the city were down some 20 percent because of high prices.
Some apartments, the committee found, were being sold at up to 50 percent above the fair price.
For their part, some landlords claim that an increase in the price of building materials has forced them to raise prices.
“Construction material prices have increased by 20 percent. Therefore, prices reflect building costs. Any landlord must be interested in making back the cost of a building within two year,” according to Abdullah Saneea, landlord of a new building.
Saeed Taleb, a young Saudi in search of a three-room apartment said, “I am still staying in a hotel after moving to Jeddah from Riyadh. I have failed to find a suitable home with a reasonable rent. There has been an unreasonable hike in the rents of residential apartments,” he said.
“After wasting lot of time searching for a flat, I could find only a small apartment for an annual rent of SR 25,000. But I was surprised to find out this apartment was only for families.”

Green light for crown prince-led Saudi privatization program

Updated 25 April 2018

Green light for crown prince-led Saudi privatization program

  • The Privatization Program is one of 12 key elements of the Saudi Arabia’s Vision 2030
  • The program is aimed at increasing job opportunities for Saudi nationals

RIYADH: Saudi Arabia’s Council of Economic and Development Affairs on Tuesday approved the Privatization Program that is one of 12 key elements of the Kingdom’s Vision 2030. 

The program is aimed at increasing job opportunities for Saudi nationals, attracting the latest technologies and innovations, and supporting economic development.

It encourages both local and foreign investment in order to enhance the role of the private sector, with government entities adopting a regulatory and supervisory role. The aim is to increase the private sector’s contribution to GDP from 40 percent to 65 percent by 2030. 

The program will aim to reach its objectives through encouraging the private sector to invest in establishing new schools, universities and health centers, while the government pursues its organizational and supervisory role in health and education.

The privatization program aims to benefit from previous success stories, with the private sector’s collaboration in the development of infrastructure, and its involvement on a large scale in sectors such as energy, water, transport, telecommunications, petrochemicals and finance.

The program sets out a series of objectives in three areas: Developing a general legal framework for policies related to privatization; establishing organizational foundations and dedicated institutions to execute the policies; and setting a timescale for their delivery. 

The Council of Economic and Development Affairs is headed by Crown Prince Mohammed bin Salman.