The real estate market in Saudi Arabia is expected to return to its former vibrancy following the drop in the prices of building materials, such as iron and cement, a key market player said.
He added that the sector would soon pick up and that realtors would resume building housing units for all levels.
Al-Shallash, who is the CEO of Dar Rakan Real Estate Development Company, was talking to the press after signing a sponsorship and strategic partnership contract with the Jeddah Economic Forum.
"The Saudi real estate market has not been influenced by the world financial crisis because all of its components are domestic and it has no direct ties with the international market," he said, attributing the recent hike in the price of housing units to a rise in demand.
He added that his company was carrying out a real estate development project in Jeddah’s Qasr Khuzam area. "This is just a start to the development of many underdeveloped areas in Jeddah, Makkah and Taif," he said.
Al-Shallash expects the Qasr Khuzam project, which is the largest of its kind in Jeddah, to boost trade in the city as mega malls and supermarkets would be built as part of the project.
He said houses would be built economically in view of the fact that 70 percent of Saudis are below the age of 30. He said the real estate market would get a shot in the arm once the mortgage regulations are implemented.