Saudi Gazette report DAMMAM — Investors in real estate have united in their call for the government to facilitate the building of residential neighborhoods outside the main cities of the Kingdom. Universally referred to as “suburbs", the concept has yet to take off in the Middle East. The advantages of such development are many but the two principal benefits are the low price of land, which makes the houses affordable to the middle class families, and the dissipation of crowding and congestion in the city centers. However, this advantages are offset by the investment required for infrastructure development, including construction of roads and expansion of utilities. This is the reason real estate developers push the government to take an active role in building new residential neighborhoods. Muhammad Bin Saleh Al-Khaleel, Deputy Chairman of the National Committee for Real Estate, believes the suburbs will not only provide affordable housing for citizens but will also create much needed employment opportunities. However, he expressed fears that the established real estate companies could not build new neighborhoods on their own given the huge infrastructure costs involved. He strongly suggests the government should raise 50 percent of the capital by initiating a public subscription. Bassam Boudi, Managing Director and Executive President of Jenan Real Estate Company, concurs. “This scale of projects would never succeed without the support of the government. Having provided their wholehearted support to the industrial sector for the last three decades I think it is time to focus on creating the future housing stock our Kingdom so urgently requires," he said. Boudi pointed that the success of the UAE's suburbs as a model worth emulating. Khaled Barashid, Deputy Chairman of the Real Estate Committee at the Eastern Province Chamber of Commerce and Industry, urged the officials who are responsible for the Housing and Urban Development sector to seriously think about offering feasible investment opportunities and incentives to the real estate developers. “They possess the necessary expertise to provide our citizens with smarter residential solutions incorporating the latest technologies — such as fibre optic networks — and environment-friendly buildings," he said.
