Saudi villa prices up 20pc

Prices for villas in Saudi Arabia rose 20.5 per cent on average in the first half of the year from the second half of 2010, with values seen rising further in the short-to-medium term, Banque Saudi Fransi said in a report.

Villa rents gained nearly 11 per cent in parts of Riyadh and Jeddah while apartments rose 'modestly' and land prices were up 4.8 per cent on average throughout the kingdom, the report said.

Saudi Arabia is facing a massive housing problem due to rapid population growth and an inflow of expatriate workers coming to the kingdom which is rolling out a $400 billion infrastructure spending plan.

'The mismatch between supply and demand, particularly for smaller villas, will be a key challenge for state and private sector investors to address in the coming years,' the report said.

Source: TradeArabia