We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Wed 8 Oct 2008 12:12 PM

Font Size

- Aa +

Riyadh house prices rocket 90%

Saudi capital leading housing boom in kingdom, fuelled by housing shortage and rising purchasing power.

House prices in Riyadh rocketed by as much as 90 percent in the first half of this year, Global Property Guide said in a study published on Wednesday.

The property information firm said Saudi Arabia was currently going through a real estate boom, fuelled by record oil revenues, with house prices in Riyadh and Makkah seeing the most significant jump.

Global Property Guide said the price of land in the Saudi capital currently ranges from 400 riyals ($107) per square metre to 4,000 riyals per square metre, compared to just 156 riyals per square metre five years ago.

It said the most expensive land in Saudi was in Makkah, where land prices have reached as much as 400,000 riyals per square metre.

"The growing demand combined with limited supply of housing units caused a surge in real estate prices over the past years," the report said.

"Huge oil revenues from skyrocketing oil and petroleum prices in the global market is the primary driver for the strong economic growth and rising purchasing power of Saudis.

"Investments from neighbouring Gulf states and liberalisation of real property laws added to the boom in Saudi's real estate market."

To cater for this real estate boom, residential expenditure is projected to reach 65 billion riyals by 2010, up from 47 billion riyals in 2007, Global Property Guide said.

Arabian Business: why we're going behind a paywall

Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.
Nabeel 11 years ago

I seriously doubt Riyadh has land selling at a minimum rate of AED 400 psf. I think you meant psm