21 July 2016
JEDDAH: With the application of fees on vacant lands in Makkah and Madinah in the coming months, fees will be applied in all major cities in the Kingdom, namely Riyadh, Jeddah and Dammam.

The application of fees in the holy cities is expected before the end of this year, said Dr. Abdullah bin Hamad Al-Mishael, an investor in the development of the hospitality sector in Makkah.

Meanwhile, demand for residential support products in the three areas represents 65 percent of total demand in the Kingdom.

It appears the Saudi real estate sector is climbing into a recovery phase, which may lead to a new boom in the sector. Such an anticipated boom may have an enhanced effect on the development of the Saudi real estate sector and associated companies if proper investment and support is afforded.

"We have today a housing crisis that requires millions of readily available housing units today, before tomorrow, which is a difficult choice for the real estate sector and all workers, and thank God we have a supportive and keen government to solve this problem as soon as possible, as well as strong real estate development companies that have the financial and physical means," said Al-Mishael.

Over the past few weeks, following Ramadan and Eid Al-Fitr, and after the application of fees on vacant lands, several real estate companies announced they are in talks with the Housing Ministry to launch residential support projects.

The ministry also announced that work has begun on the accelerated loan program, with participation of several Saudi banks which will provide such loans to citizens. Such indicators suggest an expected livelihood of the real estate market in the coming period, as well as possible solutions to the housing crisis in the Kingdom.

Al-Mishael highlighted the importance of investment to achieve desired gains, noting that real estate development firms have the potential to achieve success by partnering with the Ministry of Housing. Such companies are being asked for further innovation and creativity, as well as to provide quality real estate products at reasonable prices, he said, including environment-friendly and green-housing products that save energy and meet the needs of occupants and the future of the housing market.

Al-Mishael said his message to the housing ministry is to provide more organization and training in the housing market, as well as enact better laws and policies that will attract more local and foreign investment and provide the suitable environment for the success of real estate development companies, as was done recently with regulations such as the vacant land fee system.

© Arab News 2016