TY - JOUR
T1 - A framework for providing lifelong finance to the owners of affordable dwellings in the Kingdom of Saudi Arabia
AU - Sidawi, Bhzad
AU - Meeran, Sheik
PY - 2011/4
Y1 - 2011/4
N2 - Globally, there has been a substantial increase in the number of people who are not able to buy their own dwellings due to the phenomenal appreciation of real estate prices. In line with this trend, a large proportion of the population in the KSA (Kingdom of Saudi Arabia) also appears to have had neither the chance to own their chosen property nor benefit from the real estate appreciation. It seems that this situation has arisen because the financial system does not correspond to the non-traditional characteristics of their clientele. The cultural and religious heritage and the personal attitude towards borrowing are distinctly different in the KSA. These characteristics, which are explored in detail in this paper, affect how a client would engage with a financial institution in acquiring a loan/mortgage. Furthermore, the client's lifelong needs - such as upgrading the dwelling - are not addressed by the conventional loan system. This paper proposes a framework for lifelong (ongoing) financing to address these issues. This framework was tested through a pilot study to assess the current state - and the attitude - of the banks and the Real Estate Development Fund (REDF) with regards to such a lifelong support framework.
AB - Globally, there has been a substantial increase in the number of people who are not able to buy their own dwellings due to the phenomenal appreciation of real estate prices. In line with this trend, a large proportion of the population in the KSA (Kingdom of Saudi Arabia) also appears to have had neither the chance to own their chosen property nor benefit from the real estate appreciation. It seems that this situation has arisen because the financial system does not correspond to the non-traditional characteristics of their clientele. The cultural and religious heritage and the personal attitude towards borrowing are distinctly different in the KSA. These characteristics, which are explored in detail in this paper, affect how a client would engage with a financial institution in acquiring a loan/mortgage. Furthermore, the client's lifelong needs - such as upgrading the dwelling - are not addressed by the conventional loan system. This paper proposes a framework for lifelong (ongoing) financing to address these issues. This framework was tested through a pilot study to assess the current state - and the attitude - of the banks and the Real Estate Development Fund (REDF) with regards to such a lifelong support framework.
KW - homeowner's lifelong rights
KW - Islamic building laws
KW - lifelong financing
KW - affordable housing
UR - http://www.scopus.com/inward/record.url?scp=79151478265&partnerID=8YFLogxK
UR - http://dx.doi.org/10.1016/j.cities.2010.11.001
U2 - 10.1016/j.cities.2010.11.001
DO - 10.1016/j.cities.2010.11.001
M3 - Article
VL - 28
SP - 138
EP - 146
JO - Cities
JF - Cities
SN - 0264-2751
IS - 2
ER -