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

Saudi- Reconstruction of old buildings to increase housing units by 40%  Join our daily free Newsletter

MENAFN - Arab News - 24/02/2013

No. of Ratings : 0
Add to Mixx!


 


Reconstruction of old buildings in the kingdom is expected to increase housing units by 40 percent in the coming years.
(MENAFN - Arab News) Building owners in the Kingdom's metropolitan cities are poised to demolish their old buildings and erect new multiple-floor units that could possibly increase the number of existing housing units by more than 40 percent.

Local media quoted experts who said that this phenomenon has increased during the last five years in old districts in big cities.

The municipalities have allowed owners to add more floors in residential buildings, rents have increased and the Real Estate Development Fund (REDF) is now offering credit facilities, said Jeddah-based financial adviser Faisal Sairafi.

He predicted that the demolition of old buildings for new replacements would continue for years to come with the growing demand on housing units, especially as statistics indicate that nearly 60 percent of Saudis do not own their own houses.

"If the demolition-and-replacement approach continues at the current pace, it will contribute to easing the prevalent bottlenecks in the real estate market: Both the rental and sales prices of housing units," he said.

Sairafi said low risks and small capital requirements associated with this area of investment have expanded the base of investors, notably medium class people, who see real estate investment as a secure haven for them. The number of applications for licenses to reconstruct old buildings has increased by 300 percent in the last 10 years in most parts of the Kingdom.

The number stood at 112,362 in 2011, compared to 37,585 in 2003, according to data of the Ministry of Municipal and Rural Affairs.
In Jeddah alone, some 14,476 licenses were issued last year, an increase of 30 percent compared to the previous year, said Yasir Adas, head of Licenses at Jeddah Province.

Abdullah Al-Bluwi, a key real estate broker in Jeddah, said that adding more floors to buildings or the demolition of buildings to construct new ones has become common practice in old districts of the city. He said the replacements currently represent 60 percent of construction activity in these districts, notably in northern districts such as Al-Faisaliyya, Bawadi, Safa, Aziziyyah, and Salamah.

Abdullah Al-Ahmari, the head of the Real Estate Evaluation and Auction Committee at the Jeddah Chamber of Commerce and Industry (JCCI) said this phenomenon would exert more pressure on the infrastructure of such districts during the next few years due to the growing population as a result of an increase in housing units.

He stressed that the new drive (of demolition and replacements) was meant to find a solution to the housing problem and termed it a "timely solution" as it seeks to find more housing units for the needy. He urged the municipalities to reconsider these decisions by shifting the thickly populated neighborhoods to new land plans. These have been designed to fully absorb new streets, utilities and other infrastructure projects.

The phenomenon is no longer limited to one city in the Kingdom but, rather, has become common practice in many cities, Al-Ahmari said. The number of licenses approved for demolition and replacements in Riyadh stood at nearly 27,000 in 2012 compared to 20,013 in 2010, an increase of 30 percent, Al-Ahmari said, quoting data released by the Riyadh Municipality.

 






  MENA News Headlines
Apr 24 2014Qatar- HH Sheikha Moza Meets Mayor of Kobe Visits RIKEN Research Institution ,Qatar News Agency
(MENAFN - Qatar News Agency) Kobe April 24 - Her Highness Sheikha Moza bint Nasser Chairperson of Qatar Foundation for Education Science and Community Development (QF) today held a meeting with the ...

Apr 24 2014Qatar- Sidra-BMC Event Boosts Biomedical Research Publishing ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - A symposium organised jointly by Sidra Medical Research Centre and BioMed Central (BMC) mulled trends in research and on open access publishing here ...

Apr 24 2014Qatar- Mannai Corp Q1 Net Profit up 73% to QR 150.1 Million ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - Qatar Exchange listed Mannai Corporation (QE: MCCS) net profit is up 73% to QR 150.1 Million for the first quarter of fiscal year 2014 ending March 31 ...

Apr 24 2014Bahraini firms forecasted to grow 10 pct ,MENAFN
(MENAFN) In a report based on a study of over 650 companies across GCC, Kuwait Financial Centre (Markaz) forecasts a growth of the Bahraini companies' earnings by 10 percent in 2014, Gulf Daily News ...

Apr 24 2014Israeli Army Storms Deir Samit Village West of Hebron ,Qatar News Agency
(MENAFN - Qatar News Agency) bron April 24 - Israeli army forces stormed at dawn Thursday Deir Samit village southwest of Hebron city in the West Bank. The Israeli forces conducted raid and search ...

Apr 24 2014Qatar Airways to add more seats on Doha-Vienna route ,MENAFN
(MENAFN) Qatar Airways plans to offer more 1.700 seats on its Doha-Vienna route beginning from September 2014, according to Gulf News. The company aims to expand the growing passenger demand from ...

Apr 24 2014Qatar- QFC Authority Five-a-Side Football Tournament Kicks Off ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - Qatar Financial Centre (QFC) Authority's first Five-a-side Football Tournament is displaying dribbling skills of executives from Doha's financial ...

Apr 24 2014Georgian Justice Minister Leaves Doha ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - HE Minister of Justice of Georgia Tia Tsulukiana left Doha on Thursday morning wrapping up a two-day official visit to the country. An agreement on ...

Apr 24 2014Egyptian Premier Off to Chad ,Qatar News Agency
(MENAFN - Qatar News Agency) Cairo April 24 - Egyptian Prime Minister Ibrahim Mehlib left cairo on Thursday for Chad the first leg of a three-day two-state trip that will also take him to Tanzania ...

Apr 24 2014Australian Federal Parliament Deputy Speaker Meets HE Qatari Ambassador ,Qatar News Agency
(MENAFN - Qatar News Agency) Canberra April 24 - Australian Federal Parliament Deputy Speaker Bruce Scott met here Thursday with HE Qatar's Ambassador to Australia Yousef bin Ali Al ...

Apr 24 20143 GCC countries among top 30 on network readiness index ,MENAFN
(MENAFN) According to an annual global technology survey for network readiness index for 2014, three GCC countries have made it to the top 30 list for the third year in a row, Gulf Daily News ...

Apr 24 2014Morocco Admitted As Observer Member to SICA ,Qatar News Agency
(MENAFN - Qatar News Agency) La Romana Dominican April 24 - Morocco has been admitted as an observer member in the Central American Integration System (SICA) which also includes each of Belize ...

Apr 24 2014UN Chief: All Parties in Syria Blocking Aid ,Qatar News Agency
(MENAFN - Qatar News Agency) w York April 24 - The UN Secretary General Ban Ki-moon has accused all parties in Syria's civil war of "flagrant violations" of international law over the delivery of ...

Apr 24 2014Qatar Stock Exchange Down 0.05% ,Qatar News Agency
(MENAFN - Qatar News Agency) Doha April 24 - The Qatar Exchange ended in the red area when trading closed Thursday at 12954.93 points (0.05%) down 6.63 points from the previous closing of 12961.56 ...

Apr 24 2014Afghan Guard Shoots Dead 3 Foreigners in Hospital ,Qatar News Agency
(MENAFN - Qatar News Agency) Kabul April 24 - Three foreigners including a doctor were shot dead and their colleague wounded when a guard of a private Cure Hospital opened fire on them in the ...

Apr 24 2014Aqaba Container Terminal Contributes to Elevating Standards of Pre-School Education ,MENAFN Press
(MENAFN Press) Aqaba Container Terminal (ACT), the world's gateway to Jordan and beyond, recently held a charity dinner in collaboration with the Aqaba Intercontinental Hotel. The event, held at the ...

Apr 24 2014Dubai Financial Market profit soars in Q1 ,MENAFN
(MENAFN) Dubai Financial Market (DFM) announced a better-than-expected net profit increase in the January-March period of this year, Arabian Business reported. The Gulf's only listed bourse said ...

Apr 24 2014Omani government sells 19 percent stake in Omantel ,MENAFN
(MENAFN) Oman's government could raise as much as USD530 million after selling 19 percent stake in its Omantel, according to Gulf Daily News. Muscat bourse said that the Omani government aims to ...

Apr 24 2014Representative office of Investcorp launched in Bahrain ,MENAFN
(MENAFN) Investcorp, an alternative investment manager, has recently opened a new office in Abu Dhabi, located on Sowwah Square in Al Maryah Island, according to Gulf Daily News. The opening ...

Apr 24 2014Uruguay Public Health Minister Meets HE Qatari Ambassador ,Qatar News Agency
(MENAFN - Qatar News Agency) Montevideo April 24 -Minister of Public Health in Uruguay Maria Susana Mu?iz met here on Thursday with HE qatari ambassador to the republic of Uruguay mohamed hassan ...

more...


 
Arab Advisors_11th convergence conf






Google

 
 

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
Marketwatch News
UPI News
Comtex News

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