Al-Marsad newspaper: The writer Badr bin Saud commented on the rise in rent prices in the Kingdom, believing that the regular flexibility in building permits by increasing floors, and by allocating parking spaces within residential buildings, will achieve a balance between supply and demand.
Tenant Saudi
Badr bin Saud said, in his article, “The Saudi Tenant is in Danger”, published in the newspaper, “Okaz”: “On the 23rd of this June, the Ministry of Municipal Affairs published its clarifications regarding the rental index, and said that it includes real estate data for 16 cities in each region of the Kingdom, and that the number of The neighborhoods covered by up to 1,100 neighborhoods, and the indicator available on the sakani platform enables tenants to know the average rents for housing, and with it the number of rental deals that took place on a specific date and neighborhood, during the period between 2019 and 2022, but nevertheless it remains a guiding indicator that does not oblige anyone “.
prices apartments
He pointed out: “In Britain and Australia, the government requires fairness and realism in rents and their compatibility with the local market, and that the increases be consistent with general trends in prices, and this does not happen in the Kingdom, as apartment prices range between 66,000 dollars and 1,300,000 dollars, while the average annual income does not exceed For most Saudis, $64,000 per year, and the reasonableness of prices according to international standards, assumes that the value of the property should not exceed 3 times the person’s annual income, and reaching 5 times or more indicates a problem in prices, and the above accepts the application to rent housing, which represents The ideal option for the majority of Saudis, especially in the main cities, noting that it deducts a percentage that may reach 40% of their income.
Apartments for rent
He pointed out: “About 43% of Saudis live in apartments for rent, and we can use the cities of Riyadh and Jeddah as a present case, as the first city has increased demand as a result of development projects and tourism leaps, in addition to the transfer of major companies with their employees to Riyadh, and the high rates of marriage by 9%, and the rise In the second city, it came as a result of removal and development works, equivalent to 30% of its total area.”
inflation والركود Economic
And he continued: “Rents rose in the Kingdom by 1%, in America by 11%, in Britain by 9%, and in Iran by 300%, all on an annual basis and compared to 2021 figures, in addition to inflation and economic stagnation due to Corona and the Ukrainian crisis, and what accompanies it. From global suffering in the face of high prices, and this includes the prices of services, food, medicine and fuel, and a long list of daily and necessary needs, and perhaps the Kingdom is considered the most balanced and balanced than others.
Flexibility systemic
He continued, “I believe that the regular flexibility in building permits by increasing the roles, and by allocating parking within residential buildings, will achieve a balance between supply and demand, and will motivate investors and landlords to gradually reduce rental prices, and cooperative housing projects may have provided part of the solution, with regard to rental problems for income owners. Limited, within the social responsibility programs of the private sector, or to benefit from the inspiring experience of Singapore in the issue of government housing and home ownership, and from international experiences in issuing legislation regulating and controlling real estate prices, in a manner that prevents exaggeration and randomness in rents, and prevents the confusion of the social fabric and unwanted repercussions “.
