Flip through the latest issue of Gulf Weekly.
REAL estate prices are on the rise in parts of Riyadh and Jeddah as Saudi Arabia's growing population drives up demand for residential properties.
Rakesh Kunhiraman, director of the consulting division of Oxford Business Group, said the growth witnessed in prime and emerging localities of the cities marked a turnaround for the kingdom's two key real estate markets. The economic downturn had pushed down prices, while Jeddah also had to contend with the fallout from its flash floods.
"Figures indicate that both cities are earmarked for tremendous growth, especially in prime residential districts and new growth areas in the north of Riyadh and Jeddah," he said.
"We also expect low-cost housing, such as multi-storey apartments, to gain prominence during the coming years as the kingdom's rapidly growing population stretches demand to an estimated 1.5 million new units by 2015."
Mr Kunhiraman said that the districts of Al Masiaf, Al Muruj, Al Mursalat and Al Ghadir, which are situated to the north of Riyadh's Central Business District (CBD), were generating interest among buyers, while the localities to the north of Jeddah, including the corridor close to the Corniche, were earmarked for growth.
"Riyadh's development has shifted towards the northern district due to high land prices coupled with limited availability in the core CBD areas of the city," he said.
"The market is now showing gradual signs of recovery, particularly in prime residential districts which have witnessed a rise of three per cent in sale prices during the past 12 months."
Kunhiraman said that prices in Jeddah's sought-after Corniche were being kept steady following the construction of a number of high-rise luxury apartments in the area.
"The northern districts of Al Andalus, Al Basateen, Al Hamra'a, Al Khalidiyah, Al Mohammediyah, Al Nahda, Al Nayeem, Al Rawdah, Al Salamah, Al Shatee and Al Zahraa are proving popular thanks to their proximity to the Corniche and this trend is extending towards the northern corridor," he said.
While some localities in the south and east of Jeddah have experienced a slight fall in prices, Mr Kunhiraman said he still expected these areas, which are dominated by low and middle-income residents, to influence growth in the sector.
