The head of Real Estate Appraising Commission in Saudi Arabia, Abdullah Al Ahmary, has said that around 70% of Saudi citizens can’t afford the new term issued by SAMA (Saudi Arabian Monetary Agency) which entitles paying 30% of real estate loan value as a first installment.
He added that mortgage in K.S.A still needs more regulation and law to ensure relieving citizens from any costs upon properties prices turbulence.
It’s worth mentioning that real estate market in K.S.A suffers from a number of problems including high rents rate, raw lands speculation, in addition to low purchase power for many sectors.
Many companies including CB Richard Ellis predicted that around 60% of Saudi citizens live in leased apartments
In sake of solving the problem the Saudi government has announced an ambitious project of providing 500 thousand residential to be established in a number of years.