It is predicted their prices will increase faster than other property types, particularly as there is evidence of an increase in commercial shops concentrated in areas where single men live.

A 2011 study conducted by the Organization of Business Opportunities in Riyadh showed that in general, property investment is considered the best investment sector in the long run. It is safe, with limited risks involved, and is a constant source of income, more so than stock market investments.

The study also pointed out that property prices in areas local to universities and where workers are concentrated have increased in the last five years by 85 percent. This increase has led to such properties surpassing the average prices of other property types in the Saudi market, especially in Riyadh and Jeddah.

The study advises those who wish to invest in this type of real estate to carefully study property sites in each city and investigate the costs involved beforehand because they are considered long-term investments.

It also points out that real estate financiers do offer reasonable rates for real estate loans, including “buy to rent” products that are especially for investors who buy properties to rent out and not for personal housing.

These types of property are in great demand not just for manual laborers, but also expatriate employees who are either single or who are in Saudi without their families. Also, the apartment buildings currently available are not affordable enough and not designed for housing single males.

Faisal Al-Dakhiel, a local property realtor, said construction companies in Riyadh have started looking for housing for their workers as near to the construction sites as possible regardless of the rent costs, which have on average increased recently.

Al-Dakhiel said they preferred buildings that were as close as possible because of the long distances between the north and south of Riyadh in addition to the lack of transport services between these two areas.

Al-Dakhiel confirmed most investors have converted their residential buildings into worker apartments to overcome the low demand for family apartments and to demand more rent from construction companies.

Ali Al-Wada'ani, a real estate expert, said demand for these types of buildings increased by about a half this year. He added that real estate owners are trying to profit greatly from the high demand for apartments for single men and workers, which is why they increased the rent to SR22,000 per year for a two room flat.

Muhammad Al-Abdullah, a real estate expert, said accommodating singles and workers in family neighborhoods is an old problem and is exacerbated by the fact the east and west of Riyadh is expanding. Such problems required a quick solution, which is to allocate special areas for workers and singles apartments.

A real estate study revealed that the Kingdom would need 1 million extra homes over the next five years to cope with demand for housing.