Saudi Arabia announces Sunday as first day of Eid Al Fitr    Crown Prince orders key real estate reforms in Riyadh to stabilize land and rental prices    King Salman, Crown Prince extend condolences to Thailand's king over earthquake victims    Tourism Ministry enforces closure orders, warns violators of penalties    Elon Musk's xAI acquires X in all-stock deal    Makkah and Madinah mobile data usage exceeds global average during Ramadan: CST    US, Japan mark 80th anniversary of Iwo Jima battle with memorial service    Trump signals openness to auto tariff deal    Sweet sales surge ahead of Eid as Saudi chocolate imports top 123 million kg in 2024    Trump renews push to acquire Greenland    Myanmar earthquake death toll climbs to 144    Over 2.5 million attend Khatm Al-Qur'an prayers in Makkah    Saudi non-oil exports jump 10.7% in January    Saudi creatives shine at Jeddah's Fawanees Nights with art, fashion, and storytelling    T1 CEO confirms Gumayusi's return for LCK Spring after lineup shakeup    100 Thieves claim Marvel Rivals Invitational NA crown as 2025 scene heats up    Bollywood actress vindicated over boyfriend's death after media hounding    Saudi Arabia hold Japan to goalless draw in Saitama to stay in World Cup hunt    Disney's Snow White film tops box office despite bad reviews    NewJeans announces hiatus after setback in court battle    George Foreman, heavyweight champion and cultural icon, dies at 76    Grand Mufti rules against posting prayers and preaching in mosques on social media    King Salman prays for peace and stability for Palestinians in Ramadan message King reaffirms Saudi Arabia's commitment to serving the Two Holy Mosques and pilgrims    Bollywood star Saif Ali Khan 'out of danger' after attack at home in Mumbai    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Days of random rent hikes about to end
Published in The Saudi Gazette on 05 - 05 - 2013


Saudi Gazette report
JEDDAH – The Ministry of Commerce and Industry has nearly completed the final phase of studying the unified rent contract with several sources saying it will approve the recommendations of the study over the coming few weeks, press reports said on Saturday.
The authorities hope the unified rent contract, which will clearly state the rights of both landlords and tenants, will put an end to the seemingly random increases in rent. The contract caps the amount landlords can increase rent by, said the sources. Real estate experts who welcomed the move said it would end unreasonably high rent prices.
“Some landlords in Jeddah have taken advantage of the situation by increasing rent prices before the unified rent contract comes into force. Some tenants have reported up to 30 percent increases in their rent,” said a source on condition of anonymity.
Shahwan Al-Shehaiween, a member of the real estate committee at the Jeddah Chamber of Commerce and Industry (JCCI), said rents in Jeddah have unreasonably increased over the past few months compared with the rents in other regions of the Kingdom.
He expected that low-income citizens will have to move to the outskirts of Jeddah where they can afford to pay the rent. “I think this is a dangerous indication which will affect the process of development in the governorate.”
According to Al-Shehaiween, it takes property owners over a year on average to obtain the necessary licenses from the Jeddah Mayoralty so they can rent out their properties. This has played a major role in increasing rents because many owners have not been able to obtain the necessary licenses, which take just three days at mayoralties in other regions.
“There is no equilibrium between supply and demand in the Jeddah real estate market and the absence of such an equilibrium has affected rents negatively,” Al-Shehaiween said, while calling on the mayoralty to expedite the procedures of processing construction licenses.
“Unfortunately, the Jeddah Mayoralty does not have any control over the process of issuing construction licenses and the whole matter is left to individual employees' moods.”
Abdul Aziz Al-Azab, executive manager of a real estate development company, agreed that the delay of issuing construction licenses have had a negative impact on rents. “Of all of the Kingdom's major cities, Jeddah is in dire need of more residential units to accommodate its growing population.
Having more residential units would definitely reduce rents,” he said.
While landlords typically increase rents by a certain percentage, landlords in Jeddah regularly take advantage of the situation by increasing rents at will and in complete disregard to tenant's income levels.
Al-Azab called upon the ministry to speed up the procedures of enforcing the new unified rent contract. “Today, neither citizens nor expatriates can afford the high rent of property in Jeddah.”


Clic here to read the story from its source.