Saudi supply boosted as government and banks help builders

Global agents Jones Lang Lasalle believes that the gap between housing demand and supply in Saudi Arabia is narrowing, as banks start to lend to developers again and government policy moves in favour of boosting the construction sector, Reuters reported this week.

Housing supply in Saudi Arabia, the biggest Arab economy, had been restricted over the past three years, with investors and banks reluctant to invest in real estate projects after the global financial crisis, John Harris, director of Jones Lang Lasalle in Saudi Arabia, told OPP.

"I can't quantify precisely how far the gap has closed - but if we had a shortfall of a half, maybe it is only a quarter now," he said.

Source: OPP.org.uk