The value of ongoing and planned projects in Saudi Arabia is estimated at $586 billion, representing around 128 per cent of Saudi’s GDP, according to a new report.

'While office rental prices have held up in Riyadh, several supply issues have placed pressure on prices in Jeddah. However, there is a consensus that these prices will recover later this year or early next year,' said the report by marketresearch.com.

Affordable housing has also emerged as a key opportunity in the Kingdom being driven by demographics and the health of the Saudi economy in relation to other GCC countries.

'Despite the global financial crisis, the Saudi real estate market still provides a fertile ground for investment. There is an increasing demand for housing in Saudi with investments having returns of no less than thirty per cent. As a result, all eyes are now on the biggest economy in the Middle East, monitoring the steps that will be taken in order to overcome the crisis,' said Fabien Faure, group managing director of Naseba, organizers of the second annual Real Estate Investment World Summit (REIS) in Riyadh.

A business information company that produces promotes and hosts upper-level executive B2B congresses and forums, Naseba, will host the two-day summit in Riyadh bringing together key government bodies, high net worth individuals, property developers, private and institutional investors, financial institutions and family business owners.

The event will focus on education and networking and explore investment opportunities in real estate amid global downturn. It will also highlight the latest trends and issues facing the property sector.

'These include the international investment climate, Islamic financing - along with its risks and returns - investor sentiments, transparency of laws and regulations and investment in the Middle East and Africa with the major focus being on the property market,' Fabien said.

Saudi Arabia is currently embarking on much needed reforms, introducing new laws as well as a regulatory framework to ensure that the growth of its real estate sector remains healthy and viable. 'Saudi is also expected to introduce a mandatory escrow account/guarantee system for off-plan sales.'

'We strongly believe that the second annual REIS will be the ideal platform to discuss the latest trends and opportunities in a dramatically changing market,' Fabien added.

Source: Trade Arabia News