High costs, inadequate access to mortgage financing and a lack of suitable options are the main barriers to homeownership in Saudi Arabia, a property consultancy says.
"Saudi Arabia has the largest real estate market in the GCC but the least developed mortgage market, and this has resulted in a shortage of owner-occupied residential housing, particularly at the lower end of the income scale," analysts at CBRE said in a report released yesterday.
Saudi Arabia's mortgage penetration rate is estimated to be about 2 per cent, while the UAE has a rate of about 14 per cent, CBRE said. "Even this figure is well below mature western markets such as the United Kingdom, where the penetration rate is currently around 70 per cent."
Despite a shortage of housing in Riyadh, CBRE highlighted that apartments were unpopular among Saudi nationals, partly because of the lack of privacy and because the properties could not be expanded.
"The demand for expatriate compounds in Riyadh is very strong at present, with very high occupancy and rapidly growing rents, partly due to a current mismatch between demand and supply," the report stated.
rbundhun@thenational.ae
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How to join and use Abu Dhabi’s public libraries
• There are six libraries in Abu Dhabi emirate run by the Department of Culture and Tourism, including one in Al Ain and Al Dhafra.
• Libraries are free to visit and visitors can consult books, use online resources and study there. Most are open from 8am to 8pm on weekdays, closed on Fridays and have variable hours on Saturdays, except for Qasr Al Watan which is open from 10am to 8pm every day.
• In order to borrow books, visitors must join the service by providing a passport photograph, Emirates ID and a refundable deposit of Dh400. Members can borrow five books for three weeks, all of which are renewable up to two times online.
• If users do not wish to pay the fee, they can still use the library’s electronic resources for free by simply registering on the website. Once registered, a username and password is provided, allowing remote access.
• For more information visit the library network's website.
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