Market Date Shows Saudi Real Estate Earned 8 Percent Annually since 2007

Commercial News » Commercial Real Estate Edition | By Alma Kadragic | March 22, 2010 1:05 PM ET

(DUBAI, UAE) -- Even experts who follow real estate in the Gulf may be surprised by numbers that show real estate in Saudi Arabia has earned eight percent per year since 2007. The new figures come from Dubai based Citiscape Intelligence whose research compares real estate sales and leasing prices across Jeddah and Riyadh.

Moira Robertson, Project Director of Citiscape Intelligence, said, "No real estate price index like this existed in Saudi Arabia until we commissioned our own research."

Rental prices for apartments in Riyadh and Jeddah can vary immensely. For example, rental prices of three bedroom apartments in Jeddah are on average $6400 per unit, while the same in Riyadh is $13,867 per unit, a difference of 116 percent.

Sales of the same types of three bedroom properties in Jeddah average $78,000, but in Riyadh will cost closer to $426,667, a massive difference of 447 percent.   
"Choosing the right location could save potential investors thousands of dollars," Robertson said. "We also supply information on prices for commercial property on a cost per square metre basis as well as average yields for rental property. This is vital information for investors and developers and when combined with actual build costs can quickly establish initially whether projects are financially viable or not, " she added.    

CI filters 2,500 global news sources updated every hour. It maintains a searchable database with 37,000 real estate companies, providing extensive data on emerging markets. CI also produces editorial content and interviews with leading industry professionals.

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