The major real estate markets of Saudi Arabia:

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    • Riyadh:

    As the capital, Riyadh is considered as the most important real estate market in Saudi Arabia. Unfortunately, there has been an imbalance between the demand on the units for low- and middle-income market segments and their supply.

    The real estate market demand is expected to increase even more within the upcoming years. However, the supply is expected to catch up soon as well due to multiple reasons including increasing urban developments and the city expansions, and the housing programs supported by the Saudi Arabian Ministry of Housing.

    Sakani housing program, for example, has provided around 38,000 products during 2017 that included subsidized loans, developed residential lands and residential units in Riyadh.

    According to a report issued by Knight Frank, the residential units’ supply is expected to increase by the annual rate of 2% on yearly basis till 2020.

    • Jeddah:

    As the second largest city in KSA, Jeddah’s increasing population is expected to affect the real estate market demand positively as it is predicted to increase by 2.5% on annual basis from now till the year 2022.

    Again, the demand in Jeddah, especially in the middle- and low-income segments, was faced with insufficient supply in the recent years. This issue is predict to prevail through the upcoming years.

    However, the housing programs offered by the Ministry of Housing are expected to help resolve this imbalance and continue what it has started last year. In 2017, as a part of Sakani program, 32,000 products have been provided in the province of Makkah. This number is expected to increase as more patches of the housing programs continue to be released.

    Same as Riyadh, the residential units’ supply in Jeddah is expected to increase by the annual rate of 2% on yearly basis till 2020.

    • Eastern Province:

    The case here is a bit different, as the Eastern Province houses most of the kingdom’s oil production. The real estate market demand of the province has been significantly negatively impacted by the drop in oil prices, an impact which is expected to last on the short term. This caused an imbalance in the market between its demand and supply.

    However, the white land tax, along with the supported housing programs, have helped reinvigorating the real estate market of the province. In 2017, 25,000 subsidized products have been distributed among the residents of the Eastern Province as a part of the first 8 patches of Sakani program.