Saudi Arabia has told developers that they must market at least 30 percent of the houses they are planning to build in order to be granted land for partnership projects, a newspaper in the largest Arab economy reported on Monday.
Prices of the housing units must also not exceed 750,000 riyals ($200,000) or be below 250,000 riyals, the Arabic language daily Aliqtisadia reported, quoting Housing Ministry Undersecretary Mohammed Al-Ghazwani.
"The Housing Ministry now stipulates that developers who want their projects to be accepted by the Ministry must ensure at least 30 percent of the planned units are marketed before they embark on the project," he was quoted as saying.
He also said the Ministry is authorized to stop projects that do not meet the marketing or pricing conditions and hand them over to other developers.
"The market is governed by demand and supply…any product that exceeds buyers' financial ability and purchasing power will not be marketed and this means the project will fail…hence we stress the need for reasonable prices for customers."
(Writing by Nadim Kawach; Editing by Shane McGinley)
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