Rents are soaring in Saudi Arabia as the population grows in size and becomes wealthier, research by an international property consultant shows.
In some cities, rents for homes have increased by 15% in the first half of the year, says CBRE.
The rise is spurred by a 2.8% increase in population and strong oil revenues boosting GDP by 25%.
Tenants are paying an extra 10% for renting a villa in the capital Riyadh, while apartment rents shot up 15%.
Rent rises for homes in Jeddah were running at about the same rate, but the government has announced plans to build 10,000 low-cost homes to the north of the city.
Home sales surge in Kuwait
Meanwhile, the National Bank of Kuwait reports home sales were up 18% in June compared to the previous month.
Real estate sales in June totalled US$942 million, almost unchanged from June 2011 but up 18% month on month.
Home sales totalled US$526 million, an increase of US$120 million compared to June 2011 as the number of transactions increased.
Much of the Middle East and North Africa (MENA) region has suffered massive drops in property prices due to oversupply and the global downturn.
As they struggled to regain momentum, the Arab Spring uprising across MENA dragged them back down.
Demos dampen prospects
Meanwhile, more unrest across the Middle East in response to a film that Muslims purport insults their religion has lead to the deaths of diplomats and more demonstrations and displays of violence outside embassies.
A US consulate was attacked and three Americans were killed in Benghazi, Libya, on the anniversary of the attack on 9/11 attack on New York, while Egypt, Sudan and Yemen have also seen disorder.
Many industry observers are hoping the episode does not damage property prices and tourism in Egypt. The demonstrations have been in Cairo, more than a thousand miles away from the popular Red Sea resorts of Sharm-el-Sheikh and Hurghada.
