Prices are rising in Al-Taif City
People that have low income always complain about the high prices in Al-Taif and that they can't buy lands because of their high prices. The price of one square meter can reach three thousand Saudi Riyals; only investors (most of them are from outside the city) can buy lands for their own projects.
It's very obvious that the demand for the real estate increased during these years a lot; which will promote investment in the region, in the supply and the demand side as well.
First of all, Taif needs governmental marketing, which means that there should be some governmental projects (e.g. health projects); to support the real estate ones because the city is ready to set up major investment projects according to the highest international standards.
The city considered very touristic; therefore, more touristic projects should be carried on which will result positively in the real estate investment and this kind of investment requires huge efforts and abilities which are already available but we need more and this could be achieved if business men and government agencies work together and unite their efforts.
Building A Villa From Scratch Can be Challenging…
As for villas prices, we have mentioned before that the lands’ prices are increasing and as a result, the real estate prices in general are increasing as well. The area of a land needed to build a villa on starts from 300 square meters up to more than 800 square meters and this is for a big villa. The price of a land before building starts from 25.000 Riyals to more than 80.000 Riyals.
To calculate the cost of building a villa on a 600-square-meter land, it is important to calculate the built-up area, which usually is 50%.
- The ground floor 600*50% = 300 square meters.
- First floor 600*50% = 300 square meters.
- The annex (let's suppose) = 80 square meters.
- The built-up area here is 680 square meters.
Then we calculate other expenses like:
- Buying concrete = 59400 Riyals
- Buying iron = 97200 Riyals
- Buying blocks = 35360 Riyals
- Contractor's pay = 68000 Riyals
- Other costs = 10000 Riyals (like excavation, backfill, insulation, buying cement and thresholds…etc)
- Total cost of these materials= 191960 Riyals + the price of the land.
The prices of the real estate increased in the city compared with the prices in the region- to 400% during the last five years, and that's because of its vital location and to the increasing number of tourists from inside and outside the kingdom. Moreover, the investment rates are more than 100%. According to some investors in the real estate field in A-Ta'if, the residential property price rise is unprecedented.
One can also buy a ready-built villa; since some people are willing to pay more money in order to buy a villa without facing the building burdens, others prefer to build it the way they desire it to be.
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