Arabian Business reported that house prices in Saudi Arabia are likely to increase by up to 5% over the next 2 years.
The investment bank Rasmala said that it was cautiously optimistic on the kingdom's real estate market due to an uncertain global economy and inherent structural challenges facing the Saudi economy. It added that "We expect house prices to appreciate between 0% and 5% annually in the next two years. We believe the Saudi real estate sector will experience sustained demand pressures, partially offset by affordability, financing, youth unemployment challenges and global macro uncertainty."
Saudi Arabia's real estate sector is the largest among the countries of the Gulf Cooperation Council, with about 4.6 million residential units and pent up demand for 0.4 million units as of end 2009.
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