A COMPARATIVE ANALYSIS OF THE PRICING FACTORS OF THE RESIDENTIAL PROPERTIES IN CENTRAL JEDDAH

Abstract

The real estate business is considered to be one of the largest business areas that can play a major role in affecting the economy of the country. It can contribute in economic growth and urban development for it is the area of business where the large surplus of money is invested and circulated. One important aspect of understanding the real estate market and its nature is to understand the determinants that affect pricing the residential properties in that market. This paper aims to contribute to the research done in Saudi Arabia and the United Arab Emirates by investigating and comparing the factors that drive pricing of the residential properties in central Jeddah, Saudi Arabia and central Dubai, United Arab Emirates from a buyer’s perspective. Surveys were designed to collect data aiming to understand the property buyers’ preferences and mentality towards buying properties. The research found that the locations and prices of the properties are the two most important factors affecting the purchase decisions of property buyers in Jeddah. Moreover, the research found that property buyers in Jeddah prefer living and buying properties in North Jeddah. Additionally, it was founded that the majority of the survey respondents preferred buying properties in Dubai and Istanbul if they were given the chance to buy a property abroad.