VAT hike in Saudi prompts housing market to move towards rentals – ZAWYA

VAT hike in Saudi prompts housing market to move towards rentals – ZAWYA

The residential sector in saudi arabia is expected to see a shift towards the rental market, thanks to the tripling of vat from july 1 to help the coronavirus-hit economy.according to real estate advisory firm jll, expected high levels of unemployment and a reprioritisation of household spending as a result of raising the vat will make the rental market in the kingdom gain momentum."a reprioritisation of household spending will continue, and we expect to see a shift towards the rental market as it becomes comparatively more attractive and cost competitive,“ dana salbak, head of research for jll mena said.according to real estate advisory firm jll, expected high levels of unemployment and a reprioritisation of household spending as a result of raising the vat will make the rental market in the kingdom gain momentum.the residential sector in saudi arabia is expected to see a shift towards the rental market, thanks to the tripling of vat from july 1 to help the coronavirus-hit economy."a reprioritisation of household spending will continue, and we expect to see a shift towards the rental market as it becomes comparatively more attractive and cost competitive,“ dana salbak, head of research for jll mena said."this could see performance