| Saudi Arabia is facing a huge housing shortage as demand continues to outstrip supply requiring SR500bn in financing to construct 1.25 million houses by 2014. Total real estate financing is also forecast to reach SR60bn by 2013, as a result of growth in total real estate lending by SR17bn in the second quarter of this year alone, leading experts to comment that the implementation of the Kingdom's newly approved mortgage law may be a prime solution to the housing crisis.
"With the landmark approval of the Saudi mortgage law in July, the Kingdom's population quadrupling over the last four decades, requiring 4.6 million houses by 2020, I expect that the mortgage law will have a moderating effect on the Saudi real estate market over the short to medium-term, allowing up to 80% of Saudi citizens to become first-time homeowners," said Hasan Al-Yamani, Director at Abdul Latif Jameel Real Estate Installments at the Riyadh Urban Development and Real Estate Investment Event 2012. (Press Release)
|