"Saudi Arabia Real Estate Report Q2 2011" is now available at Fast Market Research

April 2, 2011 - PRLog -- Saudi Arabia is spending massively - US$155bn in 2011 alone - on projects to diversify its economy away from reliance on hydrocarbons. This spending is driving a stronger GDP via investments into gross fixed capital formation (GFCF). We expect real GDP growth to come in at 3.9% in 2011 and to average 3.5% between 2012 and 2015.

In addition, we believe that the country is only months away from the passing of a new mortgage law, which is part of a planned overhaul of the country's home finance market. This reform is essential, so much so that if the legislation is not passed it will put at risk our overall economic forecast. On the other hand, we acknowledge that the passing of the law is so significant that it could add upside risks to our current growth forecast. In particular, the new law is expected to help Saudi Arabia address its expanding housing deficit. The much-needed construction of new homes will also add to overall investment.

Saudi Arabia was heavily impacted by the global financial crisis, but it did avoid going into actual recession in 2009. While commercial rents and property values both fell during 2009 there was a degree of recovery during 2010, a trend we expect will persist through most of the forecast period.

In our interviews at the beginning of 2010, our sources indicated that rents had fallen during 2009 by 5-10% in each of the three main sub-sectors in both Riyadh and Jeddah. During the first half of 2010 rents began to rise across the board. Then in the second half, rents stabilised in Riyadh but continued upwards, by a further 5-10% in Jeddah.

Looking forward, the outlook is positive. We anticipate that both rents and capital values will rise at approximately the same speed. Saudi Arabia is therefore relatively unusual among the countries for which we have real estate forecasts, in that we are looking for rental yields to remain broadly unchanged over the period to the end of 2015. We see demand and supply remaining very approximately in balance within a growing economy.

Central to the past stability and the future growth of the economy is the government, and the government's associated spending. Fiscal outlays have been rising by around 13% per annum in recent years and need to maintain this kind of growth if the government is to counter political risk and meet the needs of a growing population.

For more information or to purchase this report, go to:
-  http://www.fastmr.com/prod/128800_saudi_arabia_real_estat...


Report Table of Contents:

SWOT Analysis
- Saudi Arabia Real Estate/Construction SWOT
- Saudi Arabia Economic SWOT
- Saudi Arabia Business Environment SWOT
Real Estate Market Overview
- Table: Saudi Arabia's Real Estate Market - Historic Rents, 2009 And 2010 (m2/month, US$)
- Table: Saudi Arabia's Real Estate Market - Net Yield (Per Annum), 2010 And 2011
- Table: Saudi Arabia's Real Estate Market - Terms Of Rental Contract/Lease, Mid-2010
Industry Forecast Scenario
- Real Estate Outlook
- Table: Saudi Arabia's Real Estate Market - Rentals, 2010-2012 (m2/month, US$)
- Table: Saudi Arabia's Real Estate Market - Forecast Net Yield, 2008-2015 (%)
- Construction Industry Outlook
- Table: Saudi Arabia Construction And Infrastructure Industry Data, 2007-2015
- Table: Saudi Arabia Construction And Infrastructure Industry Data, 2012-2020
- Macroeconomic Outlook
- Table: Saudi Arabia - Economic Activity
Business Environment
- Real Estate/Construction Business Environment Ratings
- Table: Middle East And Africa Real Estate/Construction Business Environment Ratings
- Project Finance Ratings: Outlook For Middle East
- Table: Design And Construction Rating
- Table: Commissioning And Operating Rating
- Table: Overall Project Finance Rating
- Saudi Arabia's Business Environment
- Table: BMI Business And Operation Risk Ratings
- Table: BMI Legal Framework Rating
- Table: Labour Force Quality
- Table: Foreign Direct Investment Inflows Into The Middle East And Africa, 2006-2008
- Table: Trade And Investment Ratings
- Table: Saudi Arabia's Top Export Destinations, 2002-2008 (US$mn)
Company Monitor
- Al Khodari Group
- Almabani General Contractors
- Arriyadh Development Company
- DAMAC
- Dar Al Arkan Real Estate Development Company
- Jabal Omar Development Company
- King Abdullah Economic City
- Makkah Construction And Development Company
- Saudi Oger
BMI Methodology
- How We Generate Our Industry Forecasts
- Construction Industry
- Bank Lending
- Real Estate/Construction Business Environment Rating
- Table: Weighting Of Indicators
- Project Finance Ratings Indicators
- Table: Design And Construction Phase
- Table: Commissioning And Operating Phase - Commercial Construction
- Table: Commissioning And Operating Phase - Energy And Utilities
- Table: Commissioning And Operating Phase - Transport
- Sources

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets.  BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports.  Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports.  View more research from Business Monitor International at http://www.fastmr.com/catalog/publishers.aspx?pubid=1010

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

# # #

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.