A recent report by the International Monetary Fund (IMF), which was based on Saudi official estimates of the 9th Development Plan (2010-14), set off alarm bells about shortages in the Saudi housing sector. The IMF country report No. 11/292 issued this September stopped short of dwelling on the destabilizing long-term effects of the current housing shortage. It stressed the lack of available affordable housing due to demographic factors and bottlenecks in the real estate market, growing population with smaller average size of households and continued urbanization – factors that have sharply increased demand for housing in recent years. In addressing measures to be taken to expedite the supply of housing, the IMF suggests that the Saudi government should unlock the static supply of land, accelerate approval of mortgage laws and develop an institutional framework for medium-term lending institutions. (Full report on P10) __
