Coalition To Restore Legitimacy In Yemen: A Prison Was Not Targeted In Sa'dah, Will Present All Facts And Detailed Information To The JIAT Regarding The Houthi Militia's Claim That The Coalition Targeted A Prison    Algeria Records 2,130 New Cases of Coronavirus    Joint Saudi-US exercise concluded in the Eastern Province    Stellar speaker line-up at Leap conference in Riyadh    Tata Group takes over India's loss-making national carrier    Ukraine crisis: West threatens to ax Russia gas pipeline    KSrelief Distributes More than 24 Tons of Food and Shelter Aid in Kabul, Afghanistan    KSrelief Supervisor General Meets with Ethiopian Finance Minister    Saudi Stock Exchange Main Index Ends Trading Lower at 12,179 Points    Royal Order: February 22 of every year shall be designated to mark commemoration of Saudi State founding under "Founding Day" name, and shall be an official holiday    Federation of Saudi Chambers Calls for Preparing Roadmap for Arab-Russian Economic Relations    Booster dose: Saudi Arabia updates Covid immunization status starting Tuesday    Saudi Arabia reiterates its warning to violators of isolation and quarantine instructions    Prince Andrew denies close friendship with Ghislaine Maxwell    Australian scientists find 'spooky' spinning object in Milky Way    Biden expected to nominate first black woman to US Supreme Court    Salah helps Egypt beat Ivory Coast in shootout at African Cup    'Orange is the New Black' actress Kathryn Kates dead at 73    Jordan's Army Kills 27 Drug Smugglers on Border with Syria    Egypt Records 1910 New Cases of COVID-19    All remaining slums in Makkah to be developed soon    Indian community marks Republic Day with patriotic fervor    GACA, KACST sign MoU to establish a center for research & development    British driver Sam Bird sets sight on more triumphs in Saudi Arabia 2022 Diriyah E-Prix    PIF unveils leading gaming and e-sports group    RCU launches direct flights from Paris to AlUla    Saudi Stock Market Index Ends High At 12,182 Points    Royal Commission in Yanbu Achieves Arab Award for Operation and Maintenance    Sir Elton John postpones US shows after positive Covid-19 test    Bollywood's Shilpa Shetty cleared of obscenity over Richard Gere kiss    At least six killed in Cameroon stadium stampede    General Court of Audit President Inaugurates 8th Conference for Internal Audit with Int'l Participation    Taylor Swift slams Damon Albarn over songwriting comments    Omani National Football Team Arrives in Jeddah to Meet Saudi National Team    Saudi Handball Team Loses to Qatar in Main Round of 2022 Asian Men's Handball Championship    Eighth Season of ABB FIA Formula E World Championship to kick off in Diriyah    20th Asian Handball Championship Main Round to Kick off Tomorrow    Riyadh's Qualitative Events Enrich its Winter, Attract World Attention    SFDA: Fat is a Source of Energy and Its Abundance is Linked to Chronic Diseases    Reflections on celebration of Christmas    Royal Commission for AlUla to Hold Custodian of the Two Holy Mosques Endurance Cup 2022, Richard Mille AlUla Desert Polo    Saudi Arabia's Pavilion at Expo 2020 Dubai Organizes a Dance Theatrical Show for Children    Saudi Arabia rebuffs UN resolution on 'sexual orientation'    Kabir Khan eyes on joint Indian – Saudi film projects    Pilgrims Perform Dhuhr and Asr Prayers at Arafat Holy Site    Council of Senior Scholars: Muslim Brothers' Group Don't Represent Method of Islam, rather only Follows its Partisan Objectives, Violating our Graceful Religion    Eid Al-Adha Prayer Performed at the Grand Holy Mosque    Pilgrims Perform Dhuhr and Asr Prayers in Arafat Holy Site    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Real estate market in Eastern Province falls
Published in The Saudi Gazette on 28 - 07 - 2016

DAMMAM — Real estate in the Eastern Province has witnessed a sharp decline and the prices of land, houses and even rent have gone down considerably. However, interestingly, rents in extravagant housing compounds keep spiraling and reaching unbelievable levels.
Prime land in the cities of Al-Khobar and Dammam have gone down by roughly 5 percent and realtors fear that the prices may slide further in coming days. Interestingly in neighboring Bahrain which is just across the King Fahd Causeway the real estate is witnessing a modest upward trend both in terms of land and properties as well as rents.
The decline in the Eastern Province is interpreted as a reflection of a declining oil price and shelving o0f some planned projects. "Investors are too keen to invest in Bahrain and in Europe particularly in the United Kingdom," said Abdul Hadi, a realtor in Dammam who has witnessed the unprecedented growth in 2010 onward.
After the debacle in the share market in 2006, investors saw real estate as safe haven for investment. And in the past five years they have yielded a very healthy return on the investment, Abdul Hadi said. But 2016 witnessed a sudden drop in construction activity in the region and some p0rime properties which were earlier in high demand went a begging with not too many buyers showing their interest, he said.
Abdul Aziz Al-Misfir, another realtor in Al-Khobar, was, however, optimistic. "It is a very temporary phase and not much should be read in declining prices. Around this time of the year real estate does witness a decline due to slowdown in business activities as a result of extreme weather conditions and extended summer holidays when most of the businessmen retire to the resorts in the Kingdom and abroad," he said.
However, he admitted that there is sudden drop in rent rates and to him it was an alarming trend. He attributed decline in rent rate to departure of many expatriates from the Kingdom and mass movement of expat work force to adjacent areas like Ras Al-Khair where major projects are coming up at Ma'aden and Sadara. "The impact of sharp movement of workforce is seen in Jubail which is closer to Ras Al-Khair and where rents are going high both in the Jubail city as well as in Royal Commission area", he said.
The construction activity in Rakah area as well as Petromin district was on peak as demand of houses was highest in this area due to its proximity to International Indian School which has more than 18,000 students and many Indians prefer to stay in that area for their convenience.
However, construction activity has slowed down in both the areas, particularly in Rakah area and one could see a long line of unfinished apartments.
Realtors are hopeful that the real estate price will bounce back in the next two to three months with the easing of weather conditions and return of businessmen from holidays. However, they are apprehensive of declining house rent and believe that it may fall further in coming days as companies are sending back a large number of their expat work force in order to meet the stringent Saudization laws.


Clic here to read the story from its source.