Fatima Muhammad

Saudi Gazette

JEDDAH — Developers need to focus on new construction projects that can increase the housing units in the Kingdom, said the chief executive officer of housing developing company Ewaan KSA.



The developers, said Riyadh Al-Thagafi, need to reduce their profit demand to help reduce the prices of housing units.



Empty land is just another challenge that faces the building of housing units and that needs to be addressed urgently, said speakers on the second day of the Jeddah Economic Forum 2013.



Al-Thagafi called on developers to head towards housing projects instead of investing in other commercial projects like malls and restaurants. Among the main challenges that face them is the long procedures that leave projects in limbo.



According to him public perceptions about housing need to be changed so that people are happy with living in small homes. He said: “We do not want families to live in tiny homes, but they have to live in houses that they can afford, and that can mean homes that are small.”

Mansour Amer, founder and chairman of Amer group in Egypt, said the main challenge facing the Kingdom is the increase in land prices.



Speaking to reporters at a side session at the forum, he added that the government should provide land to developers for affordable prices for them to start investing.



Amer was introducing the Egyptian experience in constructing complete cities that have not only homes but also facilities including malls, restaurants and other services.



This model, he said, can be implemented in the Kingdom and provide accommodation to the public for future generations.



Saudi Arabia and Egypt share many cultural values.



This, said Amer, can help projects that succeed in Egypt to be applied in Saudi. He said the Saudi government should chose to either give the land to developers to develop and construct housing cities or put these plots up for sale.

“There are some countries that are less developed than the Kingdom, yet they succeeded in giving the land to developers and also make it easier for middle-income families to own their own homes. Having this forum is just an indication that the government is looking for a solution.”



Amer said plots of land are expensive and many owners choose to leave them undeveloped, so their prices just keep increasing. The government must impose fees on empty plots of land or set a regulation that curb their accumulation.