A September review of the housing market by National Commercial Bank (NCB) Capital estimated that close to $346 billion in investments would be needed to construct 2.4 million housing units between 2011 and 2020, predicated on the fact that the mortgage law would also help feed an active secondary market and boost effective capital utilization by lenders. This in turn would mean more opportunities for commercial banks and real estate developers “to take on more active roles.”

Home prices have been rising for almost a decade in the Kingdom, according to the Global Property Guide. From 2002 to 2005, prices rose 13.7 percent annually according to NCB.

Some stocks have already been rallying on expectations of a new home building boom. Dar Al-Arkan’s shares, for example, have gained around 20 percent this year and close to 50 percent over the past year, outperforming Saudi Arabia’s benchmark index.