| Kippreport.com

Property prices drowning

January 4, 2010 2:33 by Muhammad al-Sulami

Real estate agents have estimated that more than SR100 million ($26.6 million) worth of property was damaged by the floods in east Jeddah last November, and said that property prices have dropped drastically in areas worst hit by the disaster.

“Residents of the eastern Al-Harazat district are considering selling their homes and moving elsewhere to protect their lives and investments,” they said. However, there are no buyers as the areas are low-lying and have been built in the path of floodwaters, the agents added.

Omar al-Ghamdi, a resident of Al-Harazat, said the walls of the courtyard of his house collapsed and the floor sank following the floods. “The house is no longer inhabitable. It can’t be repaired; I really don’t think anyone would want to buy it,” he said.

Al-Ghamdi does not think people would want to buy property in those areas that have been affected by the floods “because these are areas under the constant threat of floods.”

Estate agent Ibrahim Musa said many homes and empty plots of land were damaged in the floods. “We’re not getting buyers nowadays, especially since there is talk that all homes built in valleys prone to floods are to be knocked down,” he said.

Musa said the current price of a 750 square meter piece of land in the Al-Harazat district was SR45,000 ($12,000) while the price of a similar plot close to the main roads might reach SR300,000 ($80,000). “Prices fell dramatically after the floods. We have not seen a single buyer for a month,” he said.

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Tags: buyers, floods, Jeddah, prices, property, Saudi