{"id":2857,"date":"2016-01-28T00:00:14","date_gmt":"2016-01-27T17:00:14","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=2857"},"modified":"2016-01-27T21:14:53","modified_gmt":"2016-01-27T14:14:53","slug":"saudis-forced-to-rent-after-rule-on-bigger-down-payments","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/saudis-forced-to-rent-after-rule-on-bigger-down-payments\/","title":{"rendered":"Saudis forced to rent after rule on bigger down payments"},"content":{"rendered":"


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\nThousands of Saudis hoping to buy their own homes are being forced to rent because they can’t afford to put down the large deposits required by new government regulations.Housing rents in the Saudi capital Riyadh grew 6 per cent in the year to November while in Jeddah, the kingdom’s second-largest city, rents rose by 11 per cent over the same period as would-be buyers were forced to rent.According to a new report from JLL, villa prices in Riyadh fell 6 per cent in 2015. In Jeddah, although prices increased by an average of 6 per cent, this came from a very low base.
\nJLL said that the reason for the changes was a government move in November 2014 to cap loan-to-value ratios on mort\u00adgages. It means that buyers need a 30 per cent down payment in a market where most people cannot afford their own home.The news comes after Saudi ministry of justice figures reported that the number of housing sales in Jeddah fell 19 per cent in the year to November 2015 compared with the year-earlier period, and in Riy\u00adadh they fell by 11 per cent over the same period.
\n“We have witnessed a shifting demand in the residential market in both Riyadh and Jeddah, as the trend moves towards property rentals from sales,” said Jamil Ghaznawi, national director and country head of JLL KSA.According to JLL there is a shortfall of about 400,000 afford\u00adable units across the coun\u00adtry, while just 30 per cent of Saudis own their own homes compared with a global average of 70 per cent.
\nHardly any parts of either Riyadh or Jeddah had homes deemed “affordable” for middle-income families – households earning between 6,000 and 20,000 riyals per month, or 62 per cent of the population.A “white land tax” on undeveloped land was announced in October and will come into force in June to prevent owners sitting on land, with the levy recycled into affordable schemes. However, so far few details about how this will work have been released.
\nlbarnard@thenational.aeFollow The National’s Business section on Twitter
\n
\nSource : thenational.ae
\nRead more…Saudis forced to rent after rule on bigger down payments<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Thousands of Saudis hoping to buy their own homes are being forced to rent...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-2857","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-K5","jetpack-related-posts":[{"id":21430,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/home-prices-in-saudi-arabia-continue-decline\/","url_meta":{"origin":2857,"position":0},"title":"Home prices in Saudi Arabia continue decline","date":"July 31, 2016","format":false,"excerpt":"\r House prices in Saudi Arabia's biggest cities continued to decline in the three months to the end of June, as falling oil revenue continued to put pressure on the kingdom's economy.For the longer term, the property broker JLL's outlook was that the market should rebound if the country's economic\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":11434,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/riyadh-housing-prices-expected-to-rise-after-two-years-of-decline\/","url_meta":{"origin":2857,"position":1},"title":"Riyadh housing prices expected to rise after two years of decline","date":"April 26, 2016","format":false,"excerpt":"\r House prices in the Saudi capital Riyadh seem to have bottomed out after the government took steps to ease the effect of strict mortgage caps introduced about two years ago.According to the property broker JLL, both house and villa prices remained relatively stable compared with the previous quarter, as\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2090,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/shortage-of-saudi-homes-provides-scope-for-developers\/","url_meta":{"origin":2857,"position":2},"title":"Shortage of Saudi homes provides scope for developers","date":"January 21, 2016","format":false,"excerpt":"\r \r A shortage of homes avail\u00adable for Saudi Arabia\u2019s rapidly growing population means that there are opportunities for developers, despite the slowing economy.Several UAE developers and contractors have expanded in the kingdom in recent years, and although it is not always the easiest place to work, most remain positive\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":29265,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/uncertainty-hovers-over-saudi-arabia-residential-property-market\/","url_meta":{"origin":2857,"position":3},"title":"Uncertainty hovers over Saudi Arabia residential property market","date":"October 9, 2016","format":false,"excerpt":"\r House prices in Saudi Arabia will stutter over the coming year as investors and lenders wait out the effects of economic uncertainty and new government reforms on the kingdom's residential property market.Analysts at the Jeddah asset management and investment firm Alkhabeer Capital said that in the near term rental\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14958,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/affordable-home-shortage-in-saudi-arabia-likely-to-worsen\/","url_meta":{"origin":2857,"position":4},"title":"Affordable home shortage in Saudi Arabia 'likely to worsen'","date":"May 31, 2016","format":false,"excerpt":"\r A shortage of \"affordable homes\" in Saudi Arabia is likely to become more acute as a global lull in oil prices forces the government to cut back on projects.According to property broker Knight Frank, budget cuts prompted by the oil price crash are prompting the country's Ministry of Housing\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":13954,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/arabian-construction-to-build-three-tower-emaar-residences-project-at-jeddah-gate\/","url_meta":{"origin":2857,"position":5},"title":"Arabian Construction to build three-tower Emaar Residences project at Jeddah Gate","date":"May 22, 2016","format":false,"excerpt":"\r Emaar Middle East, the Saudi Arabian development arm of Emaar Properties, has appointed Arabian Construction Company (ACC) to build three residential towers at its Jeddah Gate project.The high-rise towers will contain a total of 283 apartments, including a number of penthouses. The one to four-bedroom units range in size\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/2857"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=2857"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/2857\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=2857"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=2857"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=2857"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}