Saudi real estate sector should focus on meeting middle class housing demand, says Al-Kadi

Participating in a panel discussion titled "Residential Requirements in the Kingdom and Strategies To Encourage Growth" on the second day of Cityscape Jeddah, Al-Kadi noted the absence of accurate statistics on housing demand.

He said the government projected demand for new houses growing at the rate of 180,000 and 200,000 per year, while some real estate experts say the demand is higher than those figures.

"There is considerable talk in the real sector about premiums and the increasing demand for palaces. However, the studies that we have conducted show that the owners of such high net-worth palaces would not like to depend on master developers to build because they prefer to construct the palaces according to their own standards and taste," he said.

Al-Kadi, who has emphasized Injaz's role as a master developer in Saudi Arabia, said the requirements of the middle income group also vary according to the level of income.

For example, the prices of villas sought by middle income families range between 800,000 and 3.5 million Riyals. The demand is higher than the supply.

Real estate developers appear to be mostly offering villas that cost around 2.5-3 million riyals, he said, explaining why the real estate sector should target the middle income group.

The Injaz Managing Director pointed out that the low income families can benefit from government initiatives to provide housing.

He noted that the Saudi government offers real estate funding through the Real Estate Development Fund and the King Abdullah Housing Program and other social programs.

Al-Kadi said that the emerging conditions in the Saudi real estate market will allow foreign investments in the sector. He expected companies from Europe, China and the United States to enter the Saudi market, bringing in their distinct capabilities.

He added that the Saudi real estate market is supported by many advantages, such as the availability of a large number of contracting companies, availability of private finance options and accumulating demand.

These are factors that make Saudi Arabia an attractive real estate investment market, he said.

Injaz Development Company was established in 2006 in Riyadh as a Saudi investment company and a master developer. It is specialized in designing and building comprehensive projects that form "cities within cities". It also acts as a real estate consulting company and investor.

Injaz recently announced Al-Gamra project in Riyadh; Marina, Injaz's flagship project, is considered one of the most important among the Kingdom's real estate projects.

It is located on the Al-Khobar-Dammam corridor on the seafront, and will consist of residential units and commercial buildings, supported by infrastructure and community amenities such as roads, mosques and recreational facilities.

Injaz displayed a model of its Marina project at Cityscape Jeddah, which generated a lot of interest among visitors to the exhibition.