Saudi realty leasing rates could rise

Riyadh: A Saudi real estate expert has warned of a raise in real estate leasing rates during the first half of 2008.

"Unless this expected rise is faced by accelerating reform on the real estate market and creating necessary legislations to organise the market, rent charges will go up and this will have direct impact on other products," Sa'ad Al Rusayes, board member of the Riyadh Chamber of Commerce and Industry (RCCI) said.

Drawing a gloomy picture, Al Rusayes said: "The situation would not bear more rise [in real estate rents] and something should be done to face it and legislations should not be kept in the drawers."

In press statements yesterday, the RCCI official pointed out that a number of factors had contributed to the rise in real estate leasing.