About 6,000 new homes were added to Saudi capital's residential market in 3Q2012
Some 6,000 new homes were added to Riyadh's residential market during the third quarter of 2012, with a similar number expected to be added in the fourth quarter, according to new research.
Two major schemes completed during the quarter - a project by Raghd Homes and the second phase of the Manazel al-Qurtaba development containing 1,000 apartments, while the Rayadah Investment Company recently awarded contracts to build 3,000 homes within the the Information Technology & Communication Complex's (ITCC) residential area.
However, the majority of houses completed recently were in smaller-scale developments of up to 20 units.
Jones Lang LaSalle predicted that an extra 100,000 homes are set to be built over the next three years, although the city's population is currently growing by an average of 200,000 people per year.
As a result, both sale and rental prices for homes continue to climb.
The average villa price increased by 7 percent during the third quarter to US$1,097 per sqm, while apartment prices grew by 3 percent to US$728 per sqm.
Meanwhile, rental prices in the city have also increased by an average of 6 percent in the third quarter, although rents in areas in higher demand such as West and Central Riyadh climbed by higher amounts.
Apartment rents shot up even further by 11 percent and currently stand at ab average of US$8,000 a year for a two-bed unit.
Saudi Arabia's Ministry of Housing has invited developers to build 7,000 new homes in Riyadh as the first part of a government programme to invest US$67bn in 500,0000 new homes for Saudi nationals across the Kingdom.