International firm wins housing contract in Jeddah
Affordable housing projects are providing a new market for contractors
An unnamed international real estate firm has won a SR1.1bn contract this week to building affordable housing in Jeddah, KSA.
The project, which will cover an area of approximately 1million m2, will commence in December with a view to providing more housing for those on middle and low incomes in the region.
It comes in response to a huge demand for residential units in the country, which statistics say can only be cost met by spending as much as SR75billion per year over the next ten years.
In an interview with the Saudi Gazette, the winning firm’s board chairman, Falah Al-Sibei said the real estate market has recently been improved by regulations and legislation which have reduced the number of bad investments by home owners.
He added that the project would be rolled out via a strategic plan as of December this year.
The project is just one of several affordable and social housing projects planned for the GCC region, the main contracts for which are currently being finalised.
The Kingdom of Saudi Arabia is among the countries in most need of affordable housing, alongside places like Bahrain and Kuwait where projects are also due to commence in the near future.