The Kingdom’s housing industry is also emerging as one of the most vibrant segments of the real-estate industry as the government steps up its support for multimillion riyal projects.
A major show planned in Riyadh this week has attracted global attention in view of the Kingdom’s efforts to provide affordable homes to citizens.
The Riyadh International Urban Development and Real Estate Investment Event will take place at the Riyadh Exhibition Center from Dec. 11-13. The event’s theme will be "Building Business in the Kingdom".
This exhibition takes place in Jeddah also in June every year.
Deep Marwaha, group director of IIR Middle East, said the Riyadh and Jeddah events are the only real estate event with a portfolio of exhibitions, conferences and seminars that bring together key industry decision makers to enhance and support the vision for real estate growth in the region.
He said: “Each of our events in Riyadh and Jeddah, has a local focus but with regional exposure. This is because Saudi Arabia has become a richly interesting market for regional investors. Our local participants gain significant benefit from this as it gives them access to both the regional and local investor communities.”
The Riyadh event is a meeting point for the entire real estate community to discuss current and future development plans in the Kingdom's capital city.
Also it is where the exhibitors display their latest projects, giving local people an opportunity to study the trends and learn about who is investing in what.
The event in Riyadh, under the patronage of Prince Mohammed bin Salman and officially supported by Arriyadh Development Authority and Riyadh Municipality, will host high-profile developers from the public and private sector.
Rayadah Investment Company, which is involved in the development of the King Abdullah Financial District, is also taking an active role in the event.
Other participants will include Ewaan Global Residential Company, Affordable House Company, Jenan Real Estate, Dar Al-Tamleek, Daem Real Estate and Working Buildings Companies.
In fact, Marwaha said all real estate developers from the public and private sectors will be taking part and supporting the Riyadh exhibition.
"Adding to the event's prestige, we have assembled a line-up of key players in the Saudi real estate market, something which no other event has to offer, and with so many activities and attractions we are expecting to break the record of 10,000 visitors in 3 days," Marwaha said.
“Since launching the Jeddah exhibition in 2009 and the Riyadh show in 2010 we have received excellent response from everyone; sponsors, the business community and the general public,” he pointed out.
In addition, he said, this year’s Riyadh exhibition will host the World Architecture Congress in Saudi Arabia for the first time.
The congress supported by the Royal Institute of British Architects and AIA Middle East (AIA ME), a chapter of the American Institute of Architects.
He said the international congress is an exclusive gathering that provides an opportunity to the Kingdom’s architectural community to meet with global industry leaders and discuss the latest trends in architecture and learn about the latest government projects.
Industry experts have also voiced optimism about market growth after recent reports suggested that the Saudi real estate mortgage law is likely to be approved soon.
"The mortgage law, once approved, will contribute to propelling the Kingdom's residential sector forward and will encourage many investment and financial companies to invest in this vital sector, especially since there is huge demand for building new housing units across the Kingdom's regions, which will help citizens to own their dream homes," said Mohammed bin Abdullah bin Seadan, managing director of Affordable House Company.
"We at Affordable House Company expect that this law will serve the principle of affordable housing both as a concept and as a building method, firstly due to demand and secondly in terms of quality. Also, new legislation such as the real estate mortgage law will make property developers and home finance providers focus more on affordable housing projects due to the market demand for home ownership at reasonable cost," he said.
Mega construction projects such as King Abdullah Economic City, Jazan Economic City, Hail Economic city and Knowledge Economic City have also generated a lot of interest among industry watchers.
When asked about any possible impact the completion of projects might have on the Saudi housing market, Marwaha said the Kingdom's economic cities follow a holistic approach and are composed of residential and commercial areas complete with all the necessary infrastructure facilities such as hospitals, schools and universities, etc.
As a modern concept, he said economic cities offer professionals and families a place to live and work in close proximity to the many local companies and international corporations that are moving into these cities.
"The economic cities are embedded in an overall infrastructural plan which will increase the connectivity between the economic cities and the main cities. Depending on the success of the economic cities we will see a partial migration of people to the new cities, although this will have a marginal effect on the housing market in the major cities."
Prominent speakers at the conference will include Fahd bin Saleh Al-Sultan, secretary general, Council of Saudi Chambers and Abdulwahab S. Abu-Dahesh, deputy to the chairman of Real Estate Committee, Riyadh Chamber of Commerce & Industry.
