The Dubai property market is experiencing a strong resurgence this year and the trend is also reflected across much of the GCC, especially in the Kingdom of Saudi Arabia.
Property Consultants CBRE has just released a report which shows rental rates of apartments in the Kingdom jumping as much as 15% in the first half of 2012.
The largest rises were in Riyadh and Jeddah as a youthful population increasingly looks to move into high-rise apartments, instead of the more traditional villa living.
This was reflected in the increase of villa prices which grew 10% during the same period, the report stated.
Population in KSA grew by 2.8 percent last year to exceed 28 million people, but strong oil revenues ensure that GDP surged a massive 25% to US$ 20,344 according to Arabian Business.
With such a boom in population and spending power there is no surprise that apartment prices are rising rapidly. There is also a lot of development taking place across KSA, especially in the hugely desirable coastal areas overlooking the Red Sea.
Supporting the country’s growth is a strong government-backed infrastructure programme to develop improved road networks which will provide easier access to new residential areas, particularly in the more central areas targeted by land price speculators, the report added.
KSA is certainly experience a boom in its real estate market and there is clearly a culture change taking place with apartments growing in popularity, especially those in premium locations.
While crude oil prices hover around US$ 100 per barrel, the Kingdom of Saudi Arabia will be in a very strong position to continue its growth plans a create exceptional investment opportunities for nationals and overseas investors.
The KSA property market is worth watching very closely in the coming months and into early next year.