Saudi Arabia might have a housing crisis by 2018 if the current gap between demand and supply continues, say economists. They blamed the lack of clear strategy and legislation for the problems facing the real estate market. The continuous shortage of houses is due to the fact that 60 percent of Saudi population is under 25 — age to get married. Nidhal Jamjoom, CEO of Kinan Co., said that an increase in population and rising immigration to bigger cities in Saudi Arabia increased the demand for apartments and villas.
He said the purchasing power of many families, the slow pace of approval of residential plots and lack of finance are adding to the housing woes. "The approval of the mortgage law is a major step toward solving the problem," he added. But the problem is unlikely to be solved even with this law. A clear real estate strategy and legislation favoring costumers rather than banks are also required. "The current bylaws and regulations need to be rewritten all over again," said Abdurrahman Ba Eshen, an economy expert. He said that housing shortage in Saudi Arabia would turn into a crisis in 2018 if no serious action is taken now.
Arab News
22 February
