here are at present no official statistics on the real estate market in Saudi Arabia; however, experts from the sector estimate that it is the biggest in the Middle East, with the highest prices per square foot in the world in some areas. But real estate activity in Riyadh – which accounts for about a third of all such activity in the kingdom – could represent around $80 billion.
Estimates vary slightly as to how much new housing is needed for Saudi’s ever-growing population. According to a study by a German company, the country will need 300,000 residential units over the next 15 years, calculating an annual growth in demand of 3 percent. It has also been suggested that there is a shortage of 225,000 residential units in Riyadh alone, and that the overall figure could be as high as one million.
Heading in the right direction: experts estimate that real estate activity in Riyadh alone could be worth around $80 billion.
In either case, real estate looks set to be a burgeoning sector as the economy continues to expand. As Salman Abdullah Bin Saedan, Managing Director of Olaya Real Estate Co., says, “The success of other sectors is reflected by real estate activity, which gets its strength from the government, which gets it from oil revenues.” Olaya Real Estate Co., a family-based company operating on Islamic principles, develops residential projects in Saudi Arabia and other GCC countries, with a strong commitment to innovation, quality, affordability and access.
One of the company’s most ambitious projects to date is the construction of an entire city south of Riyadh. The first project of its kind in the country, it will provide residential units, infrastructure, and essential services including schools, clinics, mosques and shopping facilities.
Mr. Bin Saedan is hopeful that some kind of mortgage system will emerge in Saudi Arabia, allowing more citizens access to property ownership
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