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FINANCIAL NEWS
Riyadh, Jeddah oil prices on the rise: Report
16 Aug 2010
(MENAFN) A report issued by CB Richard Ellis showed that a shortage of housing and rising land costs are causing house prices in Saudi Arabia’s two largest cities to rise while an increase in new office space will push rental rates lower in Riyadh, Arab News reported.
House prices in Saudi Arabia’s second largest city, Jeddah, have also risen in the past 12 months as the city of 3.5 million faces a shortage of around 300,000 homes, the report said.
While most of the demand for housing in the kingdom comes from low income individuals, the absence of a mortgage law and lack of financing is preventing developers from building for that segment of the population.
With a growing population of over 25 million, 70 percent of whom are under the age of 30, the world’s largest oil exporter will need to build 1 million new homes by 2014, HSBC said last year.
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