Kingdom faces real-estate bubble, says Saudi Diyar
Overpriced real-estate market hampers affordable housing initiatives
A leading Saudi architect has warned that the Kingdom’s ambitious housing programmes could be scuppered by a looming real-estate bubble. “The real-estate sector is ridiculously overpriced; it is a bubble,” Saudi Diyar principal Hisham Malaika told Arab News in an interview.
“The cost of real estate is over inflated, and it is prohibitive for real-estate developers to finance projects for low- and medium-income families,” said Malaika.
He added that, in order to realise the vision of the Custodian of the Two Holy Mosques King Abdullah to provide affordable accommodation to low- and middle-income groups, firms like Saudi Diyar “need to take the lead along with developers, while also setting up programmes to enhance Saudisation.”
The firm has currently submitted a proposal for a 1,000-unit housing development in the Kingdom.