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FINANCIAL NEWS
Saudi property market posts annual expansion of 6%
17 Dec 2012
(MENAFN) Saudi Qassim University’s president, Khaled Al-Hamoudi, stated that the Kingdom’s real estate sector is expanding at an annual rate of 6 percent, reported Arab News.
Al-Hamoudi said that the USD266 billion market accounts for 9.5 percent of the country’s non-oil gross domestic product (GDP).
The Kingdom’s new mortgage law and its executive bylaw comprise regulations for property finance and development and permits banks to fund real estate projects.
The law was outlined after studying the main reasons for mortgage crisis in several parts of the world to evade such problems.
It is worth noting that King Abdullah has ordered the establishment of 500,000 housing units at a cost of USD66.57 billion, which would help lessen real estate prices and rents.
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