Riyadh property prices start to fall
Published: 04 June 2009 14:36 GMT
Author: Colin Foreman
Last Updated: 07 June 2009 14:17
HSBC forecasts that real estate prices and rents in Saudi Arabia will fall by 15 per cent during 2009 before starting to recover slowly in 2010.
According to the bank the decline will be caused by the expected slowdown in credit growth during 2009 as it feeds through into property demand, putting pressure on prices in the short term.
The report is the second to predict falling prices in the Kingdom. In early June Jones Lang LaSalle said that Riyadh's real estate market has peaked and prices have started.
In its new Riyadh City Profile report the US-based property consultant says that all market sectors have already peaked or are approaching their peak, and prices and values in many sectors have started to decline after six months of meager gains.
The slowdown in price gains echoes other regional markets which saw price growth slow during the third quarter of last year before a sharp fall in the fourth quarter.
Although prices are reversing Jones Lang LaSalle says the market will be more stable than other GCC cities and there are still opportunities in the capital, particularly for affordable housing (MEED 7:5:09).
http://www.meed.com/news/2009/06/riyadh_property_prices_start_to_fall.html
Well received news.
Now, can someone please inform my land lady that she is suppose to decrease my rent?
