Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Saudi - Property prices poised to drop 25% in 2014  Join our daily free Newsletter

MENAFN - Arab News - 02/01/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Arab News) Prices of property, including lands and housing units, are predicted to drop by 25 percent in 2014, local media said quoting property experts.


The experts attributed the expected drop in property prices to a number of factors, including growth of stock market which will attract huge liquidity from the real estate sector, and completion of housing projects earlier announced by the Ministry of Housing in different parts of the Kingdom.
The latter reason will play a key role in solving considerable portion of the housing woe, they said.


Economic expert Fadl Abo-Ainain said the price fall of property is governed by two things; the ability of real estate decision-makers to keep the property market cohesive and avoid rush to have their money reinvested in other investments such as stock market and, secondly, to keep the present status of market in terms of recession and gradual slowdown.
According to the economic expert, the pricing fall will mainly be concentrated in metropolitan cities while smaller cities and towns will witness gradual fall in their properties.
For his part, head of Sabhan Property Development and Investments Group Naif Al-Sabhan said the new year will be a testing year for the real estate market, either to grow, decline or remain recessed.


He recalled same reasons which were behind the price fall but added that a number of real estate development firms will finalize their projects soon, a matter that will make supply surmount demand on property units and, accordingly, push prices downward.


Monopolizers, brokers and speculators of lands, villas and apartments were behind the cohesiveness and stability of prices over the past year (2013), particularly in the first half of it.

However, policies of the Ministry of Housing to develop new housing plans and provision of lands and loans came to curb price inflation, he said.
He expected that the price fall will be clearly felt in the peripherals of major cities and smaller towns where finished housing projects, initiated by the Ministry of Housing, will be distributed to citizens at affordable prices and will, hence, lead to price decrease in lands and housing units, which were earlier targeted by land manipulators.


In the mean time, property expert Abdullah Al-Shihri cited other factors supportive to possible price decline of property in the new year, including accessibility to funds, the introduction of the mortgage law and imposition of fees (zakat) on white (vacant) lands.


He said prices of real estate in the past year registered record levels, which made it difficult for seekers of lands or houses to provide the required values despite the fact that the Real Estate Development Fund (REDF) earlier raised property loans to nearly SR500,000.

 


Arab News




  MENA News Headlines
 Oct 1 2014 - GCC needs to produce dynamic non-oil sectorMENAFN
(MENAFN) According to the International Monetary Fund (IMF), in order to maintain sustainable growth, the Gulf Co-operation Council (GCC) countries have to produce a dynamic non-oil tradable sector ...

 Oct 1 2014 - Kuwait to host 23rd Gulf Cup of NationsArab Times
(MENAFN - Arab Times) KUWAIT CITY Sept 30 (KUNA): Kuwait will host the 23rd edition of the Gulf Cup of Nations Kuwait Football Association (KFA) Secretary General Saho Al-Saho said Tuesday. Al-Saho ...

 Oct 1 2014 - Abu Dhabi airport's passenger traffic up 24.8 percent in AugustMENAFN
(MENAFN) Abu Dhabi International Airport's passenger traffic increased by 24.8 percent in August compared to the same month last year, with a total of 1.920.934 passengers passing through the airport ...

 Oct 1 2014 - US Mondelez International to invest USD90m in plant in BahrainMENAFN
(MENAFN), the packaged food company, announced it is planning to build a USD90 million biscuit plant in Bahrain, which will help the company reduce costs and meet growing demand for its biscuits, ...

 Oct 1 2014 - Oman interested to invest in CyprusMENAFN
(MENAFN) Oman's Minister of Oil and Gas said that the country is very interested in investing in Cyprus, particularly in the field of research and exploitation of natural gas, Muscat Daily ...

 Oct 1 2014 - Emirates to launch new Dallas flightsMENAFN
(MENAFN) Emirates announced it has launched its first scheduled A380 daily service to Dallas Fort Worth International Airport, Gulf Business reported.The airline said it expects that the business ...

 Oct 1 2014 - Dubai Development Co. considering several offers of merger or acquisitionMENAFN
(MENAFN) Dubai Development Co, the company responsible for the Mirdif area of the emirate, announced it is considering several external offers of merger or acquisition, Arabian Business reported.The ...

 Oct 1 2014 - Etihad Rail starts on second phase of USD11bn UAE rail networkMENAFN
(MENAFN) Etihad Rail, the UAE's railway developer, announced it is set to secure government funding and award contracts for the construction of the second phase of its USD11 billion national rail ...

 Oct 1 2014 - Omani Renaissance awards 2 contracts for Duqm construction projectMENAFN
(MENAFN) Renaissance Services announced it has awarded the contractors S&T and Al Hajiry two main construction contracts in the Duqm permanent accommodation (PAC) project, Times of Oman reported. ...

 Oct 1 2014 - Oman's PEIE, Italian firm ink consultancy for Ibri projectMENAFN
(MENAFN) The Public Establishment for Industrial Estates (PEIE) announced it has signed consultancy agreements with F&M Ingegneria Spa, the leading Italian engineering consultancy firm to develop the ...

more...


 






Google

Click to Apply

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help