Published: January 19, 2012

Research and Markets: Saudi Arabia Real Estate Report Q1 2012

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DUBLIN - (BUSINESS WIRE) - Research and Markets (http://www.researchandmarkets.com/research/afe39c/saudi_arabia_real) has announced the addition of the "Saudi Arabia Real Estate Report Q1 2012" report to their offering.

Business Monitor International's Saudi Arabia Real Estate Report provides industry professionals and strategists, corporate analysts, real estate associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Saudi Arabia's Real Estate industry.

After experiencing some instability due to the global financial downturn in 2009, the market recovered in 2010. Throughout 2011, the market experienced sustained growth, generated by government stimulus spending and rising oil windfalls. This upward trend is forecast to continue in 2012 and beyond.

Saudi Arabia's various real estate sectors are, however, developing in different directions and at varying rates. The residential segment is growing the fastest, as the government is trying to bridge the widening supply-demand gap. This has pushed up rents and land prices, and prompted the establishment of a large government-led housing programme. The commercial market, however, suffers from an over-supply and is forecasted to undergo more limited growth in the short- to medium-term.

While private sector investment is expanding, the government remains the sector's primary growth driver. In 2011 the government allocated over US$82bn to fund housing construction. The new mortgage law - due to be implemented by late 2011 - will further bolster residential demand, particularly among lower- and middleincome earners. Meanwhile, the reform of the investment code--granting foreigners the right to buy real estate--is also expected to increase demand and diversify the client base.

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