Post date: May 01, 2013 7:8:42 PM
The oil rich state of Saudi Arabia is aiming to reform its housing sector, making it easier for citizens to find places to live. But many say the prospect of owning their own home is still out of reach, due to high property prices.
RIYADH, SAUDI ARABIA (APRIL 28, 2013) (REUTERS) - Saudi property developers showcased on Sunday (April 28) some of their latest housing models during a real estate exhibition at the Saudi capital Riyadh.
The exhibition, which was inaugurated by the Saudi minister of housing Showisha al-Duwaihi, is part of the kingdom's efforts to reform its housing and labour sectors to make it easier for citizens to get places to live and jobs at private companies.The exhibition also comes after a royal decree in April ordered ministries to give up land for development to the Housing Ministry.
Wealthy Saudis have bought residential land plots around the country as long-term investments, pushing up prices and making them too costly for developers of lower-income housing. Under a previous system, other plots were awarded as land grants to citizens who could not afford to develop them.
Saudi citizen Saeed al-Zahrani said the housing offers presented in the exhibition were still unaffordable.
"The real estate companies that are offering residential villas and apartments, are still demanding very high prices, imagine the price of an apartment is between 700,000 to 800,000, (Saudi Riyals) ($200,000). The situation is very difficult, and I expect that I'll go out of the exhibition without any hope that I may benefit from a particular offer that would satisfy any person looking for a suitable accommodation for himself," said al-Zahrani.
However, sales director of the Sarai Development Ltd Waleed Janodi, said various measures have been taken to secure house seekers with fair prices.
"The system of sales on the map, guarantees the housing seekers with housing units under the supervision of the Ministry of Commerce. It is a full guarantee for any person interested in getting an accommodation. In addition to that, some Saudibanks have started offering financing programs and contracts with the cooperation of real estate developers," said Janodi.
Another Saudi citizen, Turky al-Moudi, said the houses in the capital are too expensive.
"The prices of villas within the city (Riyadh) are somehow high, the prices reached to 1.5 million and 1.7 million (Saudi Riyals). Outside the city, the prices are more reasonable for those with middle or high incomes, they range between 800 to 900 thousand Saudi Riyals, so there is a big difference between the prices of villas in and outside the city, that's why house seekers tend to look around in many places in order to find the best offers," explained al-Moudi.
A shortage of land in big cities has frustrated efforts to build half a million homes - a project ordered by King Abdullah in 2011 which analysts say was one of several steps taken to avert 'Arab Spring'-style unrest.