Cityscape Jeddah 2010, sponsored by Prince Misha'l Bin Majed Bin Abdul Aziz, Governor of Jeddah, is set to take place at the Jeddah Center for Forums and Events from June 7 to 9. Described by organizers as a “showcase for unparalleled investment opportunities” and “an opportunity for the Saudi Arabian real estate industry to network with some significant international real estate investors and developers”, event director Deep Marwaha said the Saudi market offered unique characteristics. “In contrast to other Gulf countries, the real estate sector in the Kingdom requires no corrective strategy due to its continuously rising demand for residential units,” Marwaha said. In that vein, Jeddah' strategic plan has approved the construction of approximately one million housing units by the year 2030 to meet the needs of increased urban migration from rural areas and the unremitting influx of foreign workers. “There is still a lot of room for continued growth as the new real estate mortgage law will produce increased demand, particularly with the high confidence in the real estate market on the part of buyers from medium to low income groups,” Marwaha said. Marwaha said that the recently approved mortgage law would help aspiring home owners take “appropriate decisions” and assist real estate developers in their planning decisions. Mortgage loans represent only two percent of gross domestic product in the Kingdom, while only 35 percent of Saudis own their own homes. According to Ayedh Al-Qahtani, chairman of Samou Real Estate, the mortgage law is an “important step forward in expanding opportunities to buyers and investors”. “It will strengthen the Kingdom's status as one of the most important investment targets in real estate,” Al-Qahtani said. While some 47 percent of Saudi businessmen say that real estate is currently the most profitable local market, Al-Qahtani added that “we need to develop financing procedures for purchasers of residential units”.
