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Mazaya Monthly Real Estate Report -
Week 3 - October 2016
In conclusion, the report underscored
the importance of the real estate market
in adopting the Saudi Vision 2030 that
aims to increase returns to $160 billion
by 2020. The report called for maintaining
the construction sector’s fundamentals,
and augmenting the construction
sector’s yields to the maximum level.
In this regard, it referenced the positive
impact that the Saudi Vision 2030 will
have on the buoyancy of the sector, the
local economy and the gross domestic
product in general by attracting more
investments while restructuring other
sectors. Furthermore, the report indicates
that expected government expenditure
allocated to Saudi Vision 2030 will reach
more than SR 60 billion by the next year.
The report added that the government’s
support will play a major role in
helping the Saudi real sector gain
the right momentum and survive the
challenges of the past and present
so that it can regain its attractiveness
and favoured status in drawing real
estate projects. This support is needed
to reduce burden on individuals and
encourage investors through stimulus
packages and official incentives.
The report highlighted the myriad
challenges besetting the Saudi real
estate market, including the growing gap
between supply and demand with regards
to property in general and residential units
in particular. The ongoing projects as
well as those executed in the past failed
to overcome the commercial property
shortage, noted the report, highlighting
that the sector needs a momentum to
draw different types of investments in
the building and construction industry,
whose regional value is estimated at
more than $300 billion. Thus, the sector
can turn to a think tank to adopt and
produce state-of-the-art technology.