Foreign companies invest in real estate business
More than 100 foreign companies have expressed interest in investing in the Kingdom’s real estate business. Such a global interest is due to the availability of a wide range of opportunities, as the present shortage of 500,000 houses is expected to rise to one million in 2012.
Saudi Arabia has been the world’s fastest growing large country in terms of population over the past 10 years. As a result, Saudi Arabia has a very young demographic profile with around 45 percent of the population currently aged below 20 years. This young age profile and the rapid rate of urbanisation (growth of the major cities) have been the major demographic factors driving the real estate market.
Saudi Arabia has the largest real estate market in the GCC with more commercial (office, retail and residential) floor space than all of the other GCC countries combined. The current stock of commercial space is planned to increase by more than 60 percent by 2012 with the residential sector also poised for significant growth.