07 February 2014
Real estate experts believe that the cost of living in Jeddah will continue to rise because of the massive migration from several small Saudi cities and villages to the port city in search of jobs. Jeddah is the most favored destination not only for Saudis but also for expats, pushing its growth graph steeply toward north. The Makkah region which includes Jeddah and others cities accounts for 26 percent of the Saudi population at more than 7.5 million. The average annual growth rate of population in the Makkah region is 4.1 percent, and it is expected that the population figure at this rate would touch 8.1 million people by the end of this year and hit 10.3 million in 2020, says a study published in the local media.
Real estate experts, speaking to Arab News, said the massive migration to Jeddah will result in increase in housing unit prices due to the high demand. "I expect housing unit prices in Jeddah to go up due to the high demand, even as the city suffers from population pressures. When you go around the city, you will note all the streets and roads have become overcrowded. The well-developed infrastructure and the tourism sector's growth will make Jeddah more attractive to many Saudis who live in small cities and villages for a living here," Abdul Aziz Fadal, a Saudi investor in the real estate sector, said. "The infrastructure development projects in Jeddah have increased job potential besides vacancies waiting to be filled following the exit of thousands of expat workers during the amnesty period.
The massive migration to the city will play a major role in pushing up the cost of living," economist Fadal Ainain told Arab News. The metropolitan areas have well-developed services and strong transport and communication networks. Smaller towns and villages will only attract Saudis if there are investment opportunities there. According to a report published in a local newspaper, 88 percent of the Saudi population would be living in major cities by 2025 because of job opportunities available there. The report also said that several government bodies have drawn up strategic plans for the next 20 years to create jobs in small villages and towns.
Abdullah Radwan, head of the Jeddah Chamber of Commerce and Industry's contractors committee, said many Saudis from these areas have limited job opportunities in the private sector. "However, many private companies have expanded their business operations in Jeddah, Riyadh and Dammam. This has led many to move to these cities for stable and secure employment," he said. "If major projects are taken up in small villages and towns, the private sector would find them attractive for investment and in the process, create jobs," Radwan said.
Real estate experts believe that the cost of living in Jeddah will continue to rise because of the massive migration from several small Saudi cities and villages to the port city in search of jobs. Jeddah is the most favored destination not only for Saudis but also for expats, pushing its growth graph steeply toward north. The Makkah region which includes Jeddah and others cities accounts for 26 percent of the Saudi population at more than 7.5 million. The average annual growth rate of population in the Makkah region is 4.1 percent, and it is expected that the population figure at this rate would touch 8.1 million people by the end of this year and hit 10.3 million in 2020, says a study published in the local media.
Real estate experts, speaking to Arab News, said the massive migration to Jeddah will result in increase in housing unit prices due to the high demand. "I expect housing unit prices in Jeddah to go up due to the high demand, even as the city suffers from population pressures. When you go around the city, you will note all the streets and roads have become overcrowded. The well-developed infrastructure and the tourism sector's growth will make Jeddah more attractive to many Saudis who live in small cities and villages for a living here," Abdul Aziz Fadal, a Saudi investor in the real estate sector, said. "The infrastructure development projects in Jeddah have increased job potential besides vacancies waiting to be filled following the exit of thousands of expat workers during the amnesty period.
The massive migration to the city will play a major role in pushing up the cost of living," economist Fadal Ainain told Arab News. The metropolitan areas have well-developed services and strong transport and communication networks. Smaller towns and villages will only attract Saudis if there are investment opportunities there. According to a report published in a local newspaper, 88 percent of the Saudi population would be living in major cities by 2025 because of job opportunities available there. The report also said that several government bodies have drawn up strategic plans for the next 20 years to create jobs in small villages and towns.
Abdullah Radwan, head of the Jeddah Chamber of Commerce and Industry's contractors committee, said many Saudis from these areas have limited job opportunities in the private sector. "However, many private companies have expanded their business operations in Jeddah, Riyadh and Dammam. This has led many to move to these cities for stable and secure employment," he said. "If major projects are taken up in small villages and towns, the private sector would find them attractive for investment and in the process, create jobs," Radwan said.
© Arab News 2014
