IslamicFinance.de

Expected to decrease by up to 30 % of land and real estate value. Real estate experts expect property prices in Saudi Arabia to decline gradually over the coming years and return to normal levels.
According to their forecasts, this will only happen with implementing the new regulation of fees on undeveloped plots of land in urban areas (white lands), the decline in real estate mortgage and the drop in oil prices in the Kingdom. Prices are expected to fall by up to 30 % of the land and real estate value, reports investing.com.
On this basis, Ihsan Buhulaiga, a former member of the Shura Council and an economic expert, says: “White lands’ law will ensure that landlords have only two alternatives: the first one is selling the land and the other is to develop an economic project based on market need.”
Eng. Mohammed Babahar says: “These new procedures are considered an excellent step to cure the Saudi real estate market and escape the inflation that has swept the market and pushed the prices up by more than 300 % and doubled the rental rates.”