During 2017, Century21 observed no major additions in the residential segment.The market is expecting delays in the upcoming supply due to slow activity and still remains undersupplied.Recently, Ministry of Housing and Al-Tahaluf Real Estate Company announced a 462-unit residential project in the northern district of Riyadh.This will be the first Public Private Partnership (PPP) scheme in the Saudi housing sector to be developed on private sector land. This development will be a planned residential community comprising of 426 duplex units and the remaining 36 will be single-unit villas.
Real Estate Investment Trusts (REITs) is a company that owns and operates income generating real estate assets.
Saudi Arabia currently leads the market with officially eight (8) listed REITs on its stock market called
the Tadawul. The country officially established the listed REITs legal framework in October 2016.
The budgeted expenditure for 2016 was at SR 840 billion. However,the actual spending in 2016 was SR 825 billion, representing a decline of approximately 1.8%. The main reason for this decrease was due to government’s decision to cut down public pending and putting on hold mega projects. The highest budget allocation was for Military, Security & Regional Administration and the actual spending on this sector was 37% which was approximately 4% higher than the budgeted figure. While Education & Training segment received the second largest share at 25% of total actual spending. Education & Training sector remained almost stable at budgeted and actual level of spending.
The KSA economy account for a second budget defi cit Last year. The year 2015 ended with a defi cit of SR 367 billion compared to the projected defi cit fi gure of SR 145 billion. Expenditure for 2016 is budgeted at SR 840 billion while Revenue is at SR 514 billion. The Oil revenue in the current budget still accounts for 73% whereas the Non-Oil sector is contributing 27% respectively. Among the revenue increasing initiatives by the KSA government saw an increase in the petrol prices in the domestic market.
There are no property taxes in Saudi Arabia However based on the official Saudi Press Agency (SPA), the Shura Council agreed to impose an annual fee on ‘white lands’. The Council agreed that Ministry of Municipal and Rural Affairs will be in charge to issue the implementing regulations to control and organise the necessary mechanism to impose annual fees on such land that is located within the white urban scale.