Catch up on what made the news in Saudi Arabia’s property market and related sectors during January.
Saudi Arabia’s buoyant real estate sector continued its upward march.
The holy city of Makkah had a record year in 2013, with property sales soaring to SR59.4 billion – an increase of 350 per cent on the previous year. A record 17,920 real estate deals were finalised in the city, four times the rate in 2012.
In more good news, government housing projects are expected to bring down rents.
The government’s plans to build 500,000 low-cost houses across the Kingdom at a cost of SR250 billion will reduce rents and property prices, Arab News reports.
But the Industrial Commercial Chamber has warned that theinvestment environment in Makkah is not favourable to residential developers.
Despite the strength of the property sector, a report from the chamber states that development is being hampered by a lack of skilled workers, bureaucracy, and mortgages concerns.
Meanwhile, operations at Saudi Arabia’s first privately owned port are now under way.
Real estate firm Emaar Economic City 4220.SE has started operations at the port and plans to triple its investment in the facility over the next five years, Reuters reports.