Saudi: Rent jumps 30% as construction costs rise
Owners of old housing units are trying to compete and keep up with the prices of the new units, regardless of the quality
Rental prices for residential units in Jeddah have increase by 30% due to the rise in costs in the construction sector, Arab News reported.
According to experts and real estate investors, the increase in construction and building materials' prices, including steel and cement, has contributed to the jump of the housing units’ costs, both rent and sale.
The growing wages of contractors and workers has also affected the units’ costs.
Owners of old housing units are trying to compete and keep up with the prices of the new units, regardless of the quality.
Sami Al-Bbaheejy, an investor in real estate in Jeddah, told Arab News that the price rise in housing units continues to increase in light of the high demand.
Other factors affecting the rise in costs include the location of the property, the total area of the apartment, the costs of maintenance and repair for the apartment, and additional services such as car parking and central air conditioning.