Dar Al Arkan chairman Youssef Al Shelash, head of Saudi Arabia’s biggest listed developer, says he expects red tape in the kingdom’s housing market to ease.
At Dar Al Arkan, we are extremely optimistic about the real estate sector’s prospects for 2014.
We anticipate that the residential segment will continue to post strong growth due to weighty demand, although we also expect that prices will increase, especially as a result of the Saudi government’s decision to correct the situation over illegal immigrants.
While this latter move is likely to cause an increase in construction costs, it nevertheless remains a very popular move and has been accepted by most people, both Saudis and non-Saudis.
Our optimism about the sector in general is also based on wide expectations for more government measures to address the bureaucracy that plagues all efforts to solve Saudi Arabia’s housing crisis.
For the year ahead, the overall economy is expected to remain positive. In addition, despite all the global pressures that affect the price of oil, we also believe that this will remain steady due to the instability in the region.