Monday 13 April 2009

Saudi Arabia seeks to avoid real estate ills

Affluent Saudis often complain that they have only two local investment options: playing the stock market or trading real estate. Disillusioned with the volatile local bourse, many now regard property as their only outlet.

Authorities in the kingdom have watched the dramatic real estate boom and bust in neighbouring Dubai, especially affecting buyers who purchased off-plan units. And they have taken note.

Late last year, Dubai drastically curtailed off-plan sales and imposed tough penalties on developers who were not delivering. Saudi Arabia has followed suit, although the problems in the kingdom have not yet approached those of Dubai.

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