to download the complete report - GulfBase.com
to download the complete report - GulfBase.com
to download the complete report - GulfBase.com
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Real Estate Sec<strong>to</strong>r<br />
Real Estate Sec<strong>to</strong>r Outlook<br />
» In recent years, Saudi Arabia under<strong>to</strong>ok many economic reform measures that added fur<strong>the</strong>r<br />
clarity <strong>to</strong> laws and regulations and are aimed at attracting foreign investments and providing<br />
direct impetus <strong>to</strong> <strong>the</strong> real estate sec<strong>to</strong>r.<br />
» Unlike some o<strong>the</strong>r Gulf countries, <strong>the</strong> Saudi real estate market is largely driven by demand<br />
fundamentals ra<strong>the</strong>r than mere speculation. We believe that Saudi Real Estate sec<strong>to</strong>r despite<br />
<strong>the</strong> global slowdown offers good growth potential based on <strong>the</strong> domestic demand that is not<br />
yet <strong><strong>com</strong>plete</strong>ly fulfilled.<br />
» Based on <strong>the</strong> 8th Development Plan, <strong>the</strong> housing demand of around 1.0mn units is estimated<br />
over 2005-09, which implies an average increase of 200,000 units/year.<br />
» It is also estimated that <strong>the</strong> average household size could decline from 5.7 <strong>to</strong> 5.2 persons<br />
by 2012. The decline in household size also indicates <strong>the</strong> rise in housing demand in <strong>the</strong><br />
Kingdom over <strong>the</strong> <strong>com</strong>ing years.<br />
Global Investment House<br />
46 Saudi Arabia Economic Overview - January 2009
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