This is a result of the increased demand in land due to the stimulus budget announced by Custodian of the Two Holy Mosques King Abdullah, according to the company.
The largest budget ever passed by the Saudi government includes a SR40 billion fund for real estate development, SR250 billion for the construction of 500,000 residential units and a provision for increasing the value of real estate loans from SR300,000 to SR500,000.
Saudi real estate experts have predicted that the stimulus package along with the funding of the Ministry of Housing and other government support programs would help curb the price of land and private houses by 15 percent. Minister of Municipality and Rural Affairs Prince Mansour bin Miteb has recently announced that the government is working hard to provide land for citizens at reduced prices.
But according to the chairman of the National Committee for Real Estate Hamad Al-Shuaier, some areas in the Kingdom have already experienced a rise in land prices.
“Real estate is a commodity like any other which is subject to increases and decreases. It is a country of free trade after all," said Al-Shuaier. Although the budget stimulus plan was a project with long-term goals, demand was already growing faster than supply. According to Al-Shuaier, it was the supplier’s role to keep the prices in check by providing more projects and residential plans.
