MANAMA: With the expected shortfall of one million housing units by 2012, Saudi Arabia offers significant opportunities for both developers and investors over the next few years, according to the latest MENA House View report published by Jones Lang LaSalle.
“Saudi Arabia faces a potential shortfall of up to one million housing units in the Kingdom over the next three years, driven by demand from the Kingdom’s young, fast growing and rapidly urbanizing population. This demand for new space is not currently being matched by the supply of quality residential accommodation at affordable prices,” the report added.
“Compared to other realty markets globally, Saudi Arabia continues to offer an attractive long term opportunity, with investors expecting to be the first market in MENA to recover from the current downturn,” the report suggested.
Jones Lang LaSalle also expects the Kingdom to be one of the strongest performing real estate markets in the region over the next 12 to 24 months. “Saudi Arabia is a market with huge potential but affordability remains the main challenge that needs to be overcome,” said John Harris, head of Saudi operations for Jones Lang LaSalle MENA.
Jones Lang LaSalle has identified four sets of criteria that need to be addressed to provide sufficient affordable housing in the Kingdom including home finance, community planning, and engineering and business models.
