GLOBAL FINANCIAL CRISIS IN RIYADH

To what extent did the global financial crisis affect the housing market in Riyadh?

Abstract

Riyadh has a shortage of owner-occupied residential housing, mainly at the lower end of the income scale. In this paper we will talk about the structural factors that have contributed to this situation, along with the impact of the global financial crisis affect the housing market in Riyadh. First, we will briefly consider the role of housing and home ownership in an economy.

Table of contents

Abstract2

Introduction4

Discussion4

Riyadh Real Estate8

Properties in Riyadh9

The global financial crisis10

Buying Property in Riyadh13

Mortgage13

Conclusion15

Global Financial Crisis Affect the Housing Market in Riyadh

Introduction

Riyadh, the capital of the kingdom and the city of deep historical roots, is today the capital of major global populations, facilities and advanced services, as well as its political, economic and cultural, and historically has played a Riyadh prominent role in history, we find through more than three centuries, and was the capital of Riyadh second in the era of Imam Turki bin Abdullah in 1240 AH (1824 AD) and returned its glory after restoration by King Abdul Aziz, may God rest his soul in the fifth of Shawwal 1319 AH (January 15, 1902 m) to begin at home industry, modern history and fabric of modern civilization (Brigo, 2010, Pp. 51).

Although the global financial crisis is still very active and influential in various economic sectors in the Saudi Arabia, especially the real estate and housing market, but investment opportunities still exist and promising opportunity for the citizens and residents. Perhaps the real estate stocks tumbled to a large extent by the stock exchanges in the country, like the financial markets in the world, but the real estate scene is still a source of optimism for investors and members of the State, if prices fall by up to 50% in the real estate market in Riyadh, for example, this is normal in light of the fears and the sharp decline caused by the crisis, but the real estate sector did not collapse after the country, what happened was a correction of prices, not the collapse of the real estate market (Brigo, 2010, Pp. 51).

If prices went down and real estate at the apartments and luxury villas in the emirate of Dubai, the demand for villas and houses for accommodation of citizens will increase as long as there was an increase in population growth, and perhaps current prices encourage more to buy, especially with the support of local governments and housing programs in the state, then if The Dubai market has been saturated at the present time projects luxury real estate, the other emirates hungry for real estate investment, but are still areas pristine opportunities for real estate investment, especially in real estate projects, tourism such as hotels, especially in Riyadh, but must take steps concerning the status of mega-projects, which accounted for liquidity, then put the federal law for the mortgage, and encourage the financing of housing projects to the citizens by the commercial banks operating in the state, then the local ...