Realtors in the Eastern Province expect a 30 percent drop in real estate prices during 2012, which they argue is the market correcting itself after price increases of between 30 and 45 percent during 2011. Abdullah Shihab, a realtor, said real estate prices vary from one region to another based on local factors and conditions. He said prices per square meter in some planned districts are between SR1,500 to SR1,700 compared to SR1,200 to SR1,300 per square meter in Al-Qatif Governorate. He said the lack of planned districts and the growing population in the governorate were the main reasons for the real estate boom during 2011. There were different reasons for price hikes in other cities. For example, prices rose in Dammam because it was an attractive place to work and open businesses, with people migrating to the city from Al-Ahsa and other areas. Dammam does not have a shortage of planned districts or a growing population, he said. Ibrahim Quw Ahmad, a realtor, said there were fundamental reasons for the price hikes, including the Real Estate Development Fund injecting huge amounts into the real estate market. The fund increased loans to qualifying citizens from SR300,000 to SR500,000. This gave the real estate market a big push over the past few months. The high liquidity in the market was another factor. The easy loans provided by banks pushed up prices further. Banks provided personal loans at low interest rates of between two and four percent. __
