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25 August 2016
JEDDAH: Experts and real estate investors said that there are several variables that caused the rental prices of houses to go up by 30 percent.
They said that one of the reasons includes the increase in construction and building materials' prices, such as steel and cement, as well as the increasing wages of contractors and workers, which affected the prices of the housing units in terms of rent or sale.
Owners of old housing units are trying to compete and keep up with the prices of the new units regardless of the quality.
Sami Al-Bbaheejy, an investor in real estate in Jeddah, said that the price rise in housing units continues to increase in light of the high demand.
Abu Khalil, an owner, mentioned that the residential unit price between new and old properties ranges from SR2,000 to SR5,000, within the same neighborhood.
Mamdouh Al-Aql, a real estate businessman, pointed out that choices vary, so many people can't afford paying high rental costs that could take up 50 percent or more of their salary.
Reasons that lead to the increase in residential unit prices were summed by the experts as being dependent on: the property's site; the total area of the apartment; number of rooms and toilets; the costs of maintenance and repair for the apartment and the building as a whole; additional services; options such as car parking and central air conditioning; and other advantages that give greater value to the housing unit.
Mahmoud Al-Sughayer, a citizen and a tenant in the south of Jeddah for more than 10 years, said that property owners take advantage of this rise in prices, when they renew the rental prices within one or two years, and increase prices from SR1,000 to SR2,500 without considering their social status.
Mohammed Kamal Jawad, a citizen added that the main reason for the rise in prices is the absence of a clear mechanism that regulates the market.
JEDDAH: Experts and real estate investors said that there are several variables that caused the rental prices of houses to go up by 30 percent.
They said that one of the reasons includes the increase in construction and building materials' prices, such as steel and cement, as well as the increasing wages of contractors and workers, which affected the prices of the housing units in terms of rent or sale.
Owners of old housing units are trying to compete and keep up with the prices of the new units regardless of the quality.
Sami Al-Bbaheejy, an investor in real estate in Jeddah, said that the price rise in housing units continues to increase in light of the high demand.
Abu Khalil, an owner, mentioned that the residential unit price between new and old properties ranges from SR2,000 to SR5,000, within the same neighborhood.
Mamdouh Al-Aql, a real estate businessman, pointed out that choices vary, so many people can't afford paying high rental costs that could take up 50 percent or more of their salary.
Reasons that lead to the increase in residential unit prices were summed by the experts as being dependent on: the property's site; the total area of the apartment; number of rooms and toilets; the costs of maintenance and repair for the apartment and the building as a whole; additional services; options such as car parking and central air conditioning; and other advantages that give greater value to the housing unit.
Mahmoud Al-Sughayer, a citizen and a tenant in the south of Jeddah for more than 10 years, said that property owners take advantage of this rise in prices, when they renew the rental prices within one or two years, and increase prices from SR1,000 to SR2,500 without considering their social status.
Mohammed Kamal Jawad, a citizen added that the main reason for the rise in prices is the absence of a clear mechanism that regulates the market.
© Arab News 2016
