Saudi authorities to take control of rents

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Saudi authorities will set rental prices in the country after "unjustifiable" increases in recent years, according to local media.

The ministries of housing and commerce and the Saudi Council of Chambers are establishing a mechanism to set rents annually based on factors such as the age and condition of the building, interior design and location, Arabic daily Al-Watan reported.

Rents have risen an average 75 percent in the past three years, according to the newspaper.

There are 22,000 real estate-related cases pending in Jeddah courts, of which about 80 percent are between landlords and renters.

Jeddah Chamber of Commerce and Industry buildings evaluation committee chairman Abdullah Al-Ahmari said rents would now be determined by qualified evaluators.

“The move aims to put an end to the unjustified rent rises, especially in major cities,” he was quoted as saying.

The Saudi Shoura Council is presently debating whether to pay nationals annual rent allowances in a bid to fix the country’s housing shortage – it is estimated to need another 2m dwellings - by enabling them to save to build their own home.

However, experts have warned it could lead to increased rents and higher prices for building supplies and labour.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Trump casino resort business files for bankruptcy

Trump casino resort business files for bankruptcy

The Donald founded the companies but is now suing them to have...

Do celebrity branded projects ever work?

Do celebrity branded projects ever work?

The long list of celebrity-endorsed real estate developments...

1
Is this the end of the Gulf’s Indian cash dash?

Is this the end of the Gulf’s Indian cash dash?

From currency woes to taxation loopholes closing and a clampdown...

2
Most Popular
Most Discussed