Owners of residential units in the Eastern Province are raising rent prices by 10 percent starting this November. Tenants said they have received letters from owners informing them of the increase.

These hikes coincide with the recent passage of regulations in Gulf countries that stipulate annual price increases should not exceed 5 percent, according to the age of the building and its location.

Real estate specialists said these raises were inevitable with the rising cost of construction, and the shortage of skilled labor, especially after the status correction period for expatriates in the Saudi market. They also cited rising prices of construction materials and the scarcity of certain materials like iron and cement as reasons behind the increase in rentals.

The delay in implementing the Ministry of Housing’s residential projects is another reason for the widening gap between supply and demand, they said, adding that the ministry during its six years of existence has not established a clear footprint in the housing sector. The ministry hasn’t completed construction of residential units ordered by Custodian of the Two Holy Mosques about three years ago. The royal directions stipulated the construction of 500,000 units.

Experts argued that the time had come to establish and approve a higher commission for real estate. This commission will operate under the umbrella of the Chambers of Commerce, or the Ministry of Commerce and Industry, to solve problems related to buildings and apartments.

They demanded the implementation of recent regulations like funding and real estate mortgage, and enabling citizens with limited income to benefit from these new regulations. These regulations should not be limited to high income employees in the private or public sectors. They should also include people with limited income who are being forced to move to remote areas because of the rising prices. These individuals usually suffer from a static income with no sign of a raise or housing allowance, while expatriates are given housing allowance, health insurance and air tickets.