Saudi Arabia is forecast to become one of the best performing real estate markets in the world in 2012, according to Dubai developer Damac Properties.
With investment bank Rasmala predicting five percent growth in house prices over the next two consecutive years, Saudi Arabia's property sector is poised to become one of the world's leading property markets, Damac said.
Ziad El Chaar, managing director of Damac, said: "The European debt crisis is likely to constrain real estate prices across the Eurozone, the US market is still flat and with China and Hong Kong property prices tumbling, the Middle East is where investors are most likely to see growth in the New Year.
"We predict that Saudi Arabia, in particular, could easily edge into the world's top-ten list next year," he added.
Saudi Arabia's economic growth is projected to be 6.4 percent in 2011, while corporate profits in the kingdom rose nearly 25 percent in the first nine months of the year, according to a report by Global Investment House.
El Chaar added: "There is very strong positive sentiment about the outlook for Saudi's economy, and that is fuelling demand for high quality properties within the kingdom.
"We are seeing strong demand from both end users and investors seeking a market with high yields and plenty of scope for capital growth."
El Chaar said; "The investment world is so preoccupied with growth from the BRIC countries and emerging markets that they are overlooking a major powerhouse economy right here in the Middle East.
"Saudi Arabia is undergoing a once in a generational transformation, and property is an excellent vehicle to gain exposure to the Kingdom's economic expansion."
King Abdullah's commitment to spend 30 percent of the kingdom's annual GDP on public projects aimed addressing unemployment and the country's housing shortage is already stimulating the housing and construction sectors, El Chaar said.
Damac is currently constructing Al Jawharah Tower on the Jeddah Corniche, which will be one of the tallest towers in the city, and among the tallest developments in the country.
Damac said it will this month unveil its Versace show apartment at Al Jawharah.
"While there has been a lot of commentary about affordable housing, it's not only the lower end of the market where we are seeing demand. As a luxury developer, we cater to the high end of the market, and we are seeing very strong demand in the luxury market segment" El Chaar added.
Damac Properties has completed 36 buildings to date with 7,374 units and has a further 50 buildings (9,849 units) at various stages of progress across the Middle East and North Africa region.