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Itqan Capital holds a Seminar on The Saudi Real Estate Market: Opportunities and Challenges

29th September 2012

Itqan Capital in cooperation with ‘Jones Lang LaSalle’ held a seminar on the 29th of September 2012 in Qasr Al Sharq Hotel in Jeddah.

The seminar was attended by a selected group of Itqan Capital’s top clients as well as businessmen, investors and specialists in the real estate sector.
In his introductory speech, Adil Dahlawi, Managing Director & CEO of Itqan Capital, pointed out that the purpose of the seminar was to shed light on the various recent developments in Saudi real estate market and its impact on the national economy.
MR. Dahlawi said that the real estate market has witnessed several major developments this year including the establishment of the Ministry of Housing, the allocation of SR 250 billion for the construction of 500,000 residential units in addition to the expected introduction of mortgage and real estate financing regulations.
 
He reiterated that the major challenge facing the real estate market was high land prices, which in turn raised the costs of residential units and rent rates.

MR. Dahlawi also emphasized the high growth potential in the Saudi real estate market, driven by an annual population growth rate estimated at 2.9 percent, and a population of 19.4 million Saudi citizens (as of 2011) of which 66.4 percent are estimated to be in the age group of 20-40 years by the end of 2012.
Engineer Suraka Alkhatib, General Manger of Jones Lang LaSalle (JLL) and a real estate expert stated that the Saudi rental market rose up at an average of 10 percent during the last year. He estimated that Saudi Arabia needs about one million housing units during the next ten years. He expects an increase of 15 thousand units at the end of this year and nearly 100 thousand units during the next three years.


The seminar concluded with suggestions to remove the obstacles that hinder developers to cover the current deficit in housing units and stressing that Saudi real estate market is in need of more major real estate development companies in order to improve the quality. The seminar also called for a real and effective partnership between the public and private sector to facilitate legislation to attract Capital.


For further information, please contact:

Itqan Capital
Al Shatei Center, Al Malik Road,
PO Box 8021, Jeddah 21482,
Kingdom of Saudi Arabia
Tel: +966 2 234 7000
Fax: +966 2 234 7222

www.itqancapital.com

© Itqan Capital 2012