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Saudi real estate sector witnesses great growth in 2019

Saudi Arabia - February 4, 2019

The Saudi real estate sector is set to witness a “healthy correction” during 2019, following the sharp rise in property prices in the past several years, according to head of advisory at KPMG Al Fozan & Partners in Saudi Arabia Islam Albayaa.

He also added that the public and private sectors’ initiatives to enhance this sector are considered the main reason for this notable growth.

Albayaa explained that this correction is expected to continue over the short-term, but the market will pick up in the medium to long term, given the recent government initiatives to incentivise the sector, particularly the Ministry of Housing initiatives.

In November, the Ministry of Housing launched the ‘Sakani’ program through which it would provide 19,500 residential units to its citizens. The kingdom also unveiled property projects through public-private-partnerships.

Property boosts came in the form of investments by the kingdom’s state-owned Public Investment Fund (PIF), which launched several mega projects that are expected to contribute to boosting the property sector. Or due to the establishment of the Riyadh Metro, as real estate prices rose for developments located close the metro stations.

These giga projects will promote the property market in the newly developed locations especially the second home concept in the Kingdom. Moreover, some of those projects will introduce new asset classes that will increase the real estate investment alternatives.

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