| Kippreport.com

Pledge to control rising rents in Jeddah

April 7, 2010 3:18 by Ben Flanagan

Abdullah Saad Al-Asmari, the newly elected chairman of the Real Estate Committee at the Jeddah Chamber of Commerce and Industry, said his committee will try to halt the growing increase in house rents in Jeddah, which has grown by 20 to 40 percent in recent years.

The committee will mobilize the support of the governorate, police and other related departments to work out a mechanism to control real estate prices in the city.

“The tremendous increase in house rents during the past two years has badly affected the poor and people of medium income, who account for the majority of people who rent houses,” he said.

Al-Asmari said the unbridled increase in the price of housing units would have a negative impact on the national economy as the global financial crisis started as a result of the collapse in real estate prices in the US.

He said the committee would take up a number of issues related to real estate, including legal affairs, the professional development of the sector and coordination with the municipality.

He urged the municipality to take the views of the committee into consideration before approving any new real estate construction plans to avoid problems such as the Jeddah floods last November.

He said the committee would propose a number of real estate projects in order to attract investments, especially to build low-cost housing units for the poor and middle-income people.

“There is lack of incentives in this area and the committee will introduce new concepts in order to get these projects implemented to achieve social development,” the chairman said.

He said the committee’s ability in dealing with major files would attract new real state investors to the panel. He said about 40 contestants had taken part in elections to the 12-member committee, which has a four-year term.

- Arab News

Tags: Jeddah Chamber of Commerce and Industry