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Kingdom faces real-estate bubble, says Saudi Diyar

Overpriced real-estate market hampers affordable housing initiatives

Rocketing real-estate prices in Saudi threaten affordable housing initiatives.
Rocketing real-estate prices in Saudi threaten 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.

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Construction Week - Issue 758
Feb 08, 2020