While no sector has been immune to the global economic downturn, Saudi Arabia’s real estate market has had considerable resistance by way of the sheer volume of domestic demand.
Total population is estimated at 25 million, nearly 40% of which is under the age of 15 and the vast majority under the age of 30. This has had an enormous impact on growth and demand for new housing, compounded by a slow process of sociological change that calls for an increased focus on nuclear families – rather than traditional extended family models – thereby increasing the number of required units.
The country remains a leading producer of oil and natural gas and holds more than 20% of the world’s proven oil reserves. Today, Saudi Arabia is in the midst of a property boom. Riyadh, the capital and Mecca, the most sacred city in Islam, have experienced the highest house price increases. Investments from neighboring Gulf States and liberalization of property laws have added to the boom in Saudi’s real estate market.
Capital: Riyadh
Currency: Saudi Riyal
Language: Arabic
Climate: Most of Saudi Arabia experiences very large amounts of sunshine, ranging from six to eight hours a day in winter to as much as twelve to thirteen in summer. In the mountains near Yemen and in the hills facing the Arabian Sea near the Oman border, the period from June to September is much cloudier than elsewhere in Saudi Arabia, since the dominant southwest monsoon is very warm and moist; low clouds, drizzle, and light rain are frequent.
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