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Sunday, March 26, 2017

A Saudi can't even buy 1 square meter land with his Average Salary

The value of a land is about SR 5,000 per square meter while the normal pay scale of a Saudi resident in a private sector is SR 4,967 per month which is less than the price of a land per square meter. This is according to the official statistics of the Ministries of Justice and Labor and Social development. According to a number of real estate experts, an average monthly pay should be more than SR 10,000 for a Saudi resident to own a house. At Jeddah Chamber of Commerce, the member of the real land estimation committee, Abdullah Al-Ahmari, said that a Saudi would be able to possess a house when his pay would range between SR 15, 000 to SR 20,000 per month.



But he said that about 60 percent of the Saudis are getting wages which are not more than SR 10,000 per month.  The land area of Saudi Arabia is around 2,150,000 km². It is physically the fifth biggest country in Asia and second biggest country in the Arab world after Algeria. According to the experts, the price of land in some areas of the Kingdom is less than the predicted price as decided by the two ministries. The experts disagree with the predicted price of a square meter of land for the construction of apartments and say that it is wrongly estimated. Another member of Jeddah Chamber of Commerce committee, Abdullah Al-Balawi, believes that Saudis can build their own houses easily with SR 10,000 or more wages per month. They can take loans and Real Estate Development Funds.



These incentives can help Saudis in building their own homes. By keeping in mind the information provided by the two ministries, Ghada Al-Idrisi, a female member of Chamber of Commerce committee, said that it is not easy to possess personal house. It would take 70 to 100 years for a Saudi resident to have his own home. To encourage real land growth, the government is taking measures. They have introduced mortgage process, code system of new buildings and white land taxes.



The government has planned to take effective steps which are the part of the National Transformation Plan 2020 and Vision 2030, which will help the Saudi resident to own a house. ‘Sakani’, which is a program started by the Ministry of Housing this year, has the agenda to give 120,000 unit houses to citizens. Their plan is to help citizens financially and give 280,000 units houses in total. They will give 75,000 unit houses more which are in a position of construction and 85,000 financial help from different banks and the Real Land Development.



This new plan is very encouraging and will boost up the real land growth. The new techniques and technology will be helpful in reducing the time from 11 years to 5 years for the housing scheme. The new techniques and technology are helpful in the construction of housing unit and it will help and provide more financial benefits to several Saudi citizens.


Source: Saudi Gazette

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