MAKKAH, 14 January 2008 — Prices of rebar (a steel reinforcing rod used in concrete) are expected to increase by SR300 by tomorrow, which, according to market observers, would hinder the real estate projects in the Kingdom especially for houses belonging to middle-income people.
Many real estate dealers and owners said that this increase would delay their works and would paralyze over 70,000 real estate projects, 95 percent of them are owned by middle-income families. Samir Asoub, an owner of a real estate company, said called on the authorities to intervene to check the prices.
The majority of middle income families who received loans from Real Estate Development Fund said the surge in prices dampened their hopes.
Mubarak Al-Hadli, an owner of a real estate company, said that it is important to import iron to increase the local supply and prevent the increase in prices. He said the rise in prices did not only paralyzed the projects, but also resulted in great loses for the real estate companies. The new prices have disappointed citizens as they cannot have their own houses now,”Al-Hadi said.
Sa’ad Al-Suwaihri, a citizen, said the new prices have prevented citizens from building their houses since the loans they get from the Real Estate Development Fund are not sufficient.
Another citizen Fahad Al-Shihri said many have waited for a long time for their loans, and leave their rented houses, but “the high prices would force us to stay in rented apartments.”
Affected people said many would put their projects on hold because of the increase in construction prices in general.
A source at an iron factory told Al-Madinah daily that the local factories produce 4 million tons of iron annually. He added that the daily demand for iron is huge especially with the boost in real estate sector.
