Gaza Faces Multi-billion-dollar Reconstruction Challenge

A drone view shows Palestinians walking past the rubble of houses and buildings destroyed in Israeli strikes during the war, following a ceasefire between Israel and Hamas, in Khan Younis in the southern Gaza Strip, January 20, 2025. REUTERS/Mohammed Salem
A drone view shows Palestinians walking past the rubble of houses and buildings destroyed in Israeli strikes during the war, following a ceasefire between Israel and Hamas, in Khan Younis in the southern Gaza Strip, January 20, 2025. REUTERS/Mohammed Salem
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Gaza Faces Multi-billion-dollar Reconstruction Challenge

A drone view shows Palestinians walking past the rubble of houses and buildings destroyed in Israeli strikes during the war, following a ceasefire between Israel and Hamas, in Khan Younis in the southern Gaza Strip, January 20, 2025. REUTERS/Mohammed Salem
A drone view shows Palestinians walking past the rubble of houses and buildings destroyed in Israeli strikes during the war, following a ceasefire between Israel and Hamas, in Khan Younis in the southern Gaza Strip, January 20, 2025. REUTERS/Mohammed Salem

Billions of dollars will be needed to rebuild Gaza after the war between Israel and the Palestinian militant group Hamas, according to assessments from the United Nations, Reuters reported. A ceasefire between Israel and Hamas took effect on Sunday, suspending a 15-month-old war that has devastated the Gaza Strip and inflamed the Middle East.
Here is a breakdown of the destruction in Gaza from the conflict prompted by the Oct. 7, 2023 attack on Israel by militants from Hamas, which at the time ruled the Palestinian enclave.
HOW MANY CASUALTIES ARE THERE? The Hamas attack on Israel killed 1,200 people, according to Israeli tallies. Israel's retaliation has killed more than 46,000 people, according to Gaza's health ministry.
HOW LONG WILL IT TAKE TO CLEAR THE RUBBLE? A UN damage assessment released this month showed that clearing over 50 million tons of rubble left in the aftermath of Israel's bombardment could take 21 years and cost up to $1.2 billion. The debris is believed to be contaminated with asbestos, with some refugee camps struck during the war known to have been built with the material. The rubble also likely holds human remains. The Palestinian Ministry of Health estimates that 10,000 bodies are missing under the debris. A United Nations Development Program official said on Sunday that development in Gaza has been set back by 69 years as a result of the conflict.
HOW MANY BUILDINGS HAVE BEEN DESTROYED?
Rebuilding Gaza's shattered homes will take at least until 2040, but could drag on for many decades, according to a UN report released last year. Two-thirds of Gaza's pre-war structures - over 170,000 buildings - have been damaged or flattened, according to U. satellite data (UNOSAT) in December. That amounts to around 69% of the total structures in the Gaza Strip.
Within the count are a total of 245,123 housing units, according to an estimate from UNOSAT. Currently, over 1.8 million people are in need of emergency shelter in Gaza, the UN humanitarian office said.
WHAT IS THE INFRASTRUCTURE DAMAGE? The estimated damage to infrastructure totaled $18.5 billion as of end-January 2024, affecting residential buildings, commerce, industry, and essential services such as education, health, and energy, a UN-World Bank report said. It has not provided a more recent estimate for that figure.
An update by the UN humanitarian office this month showed that less than a quarter of the pre-war water supplies were available, while at least 68% of the road network has been damaged.
HOW WILL GAZA FEED ITSELF? More than half of Gaza's agricultural land, crucial for feeding the war-ravaged territory's hungry population, has been degraded by conflict, satellite images analyzed by the United Nations show.
The data reveals a rise in the destruction of orchards, field crops and vegetables in the Palestinian enclave, where hunger is widespread after 15 months of Israeli bombardment.
The UN Food and Agriculture Organization said last year that 15,000 cattle, or over 95%, of the total had been slaughtered or died since the conflict began and nearly half the sheep.
WHAT ABOUT SCHOOLS, UNIVERSITIES, RELIGIOUS BUILDINGS?
Palestinian data shows that the conflict has led to the destruction of over 200 government facilities, 136 schools and universities, 823 mosques and three churches. Many hospitals have been damaged during the conflict, with only 17 out of 36 units partially functional as of January, the UN humanitarian office's report showed.
Amnesty International's Crisis Evidence Lab has highlighted the extent of destruction along Gaza's eastern boundary. As of May 2024, over 90% of the buildings in this area, including more than 3,500 structures, were either destroyed or severely damaged.



Saudi Arabia: Rising Demand for Housing Units Drives Property Prices Higher

Residential and commercial real estate in the Saudi capital, Riyadh (Asharq Al-Awsat)
Residential and commercial real estate in the Saudi capital, Riyadh (Asharq Al-Awsat)
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Saudi Arabia: Rising Demand for Housing Units Drives Property Prices Higher

Residential and commercial real estate in the Saudi capital, Riyadh (Asharq Al-Awsat)
Residential and commercial real estate in the Saudi capital, Riyadh (Asharq Al-Awsat)

Real estate experts have attributed the ongoing rise in Saudi Arabia’s property price index, over 16 consecutive quarters, to significant and growing demand for housing units.

This trend is supported by the success of government-backed housing projects in attracting consumer interest, the evolution of financing mechanisms, and flexible credit facilities and subsidized financing programs offered by banks.

Experts predict that property price increases, particularly in major cities, will persist through the upcoming quarters of 2025 if the launch of new housing projects continues. The real estate price index saw a 3.6% year-on-year increase in the fourth quarter of 2024, marking the fastest growth since the first quarter of 2021.

According to the General Authority for Statistics’ quarterly report on property prices for the fourth quarter of 2024, the index was primarily driven by a 3.1% rise in residential property prices, a 5.0% increase in commercial property prices, and a 2.8% rise in agricultural property prices. On a quarterly basis, the property price index rose by 1.6% in the fourth quarter compared to the third quarter, with residential property prices increasing by 1.0%, commercial prices by 2.7%, and agricultural property prices by a significant 9.8%.

In remarks to Asharq Al-Awsat, Khaled Al-Mobid, CEO of Menassat Realty Co., attributed the price surge to heightened demand for housing units and the success of government-subsidized housing projects, which have attracted significant consumer interest. He noted that these factors have boosted property prices, especially in neighborhoods hosting large housing projects such as those in eastern and western Riyadh.

Previously low-priced properties in these suburban areas have experienced sharp price hikes due to increased demand. Al-Mubid believes that if the momentum of housing projects continues in major cities, coupled with strong consumer purchasing power and ongoing growth in the real estate sector, property prices will likely continue to rise through mid-2025, or at the very least, stabilize without declining.

Abdullah Al-Mousa, a real estate expert and marketer, told Asharq Al-Awsat that the sustained rise in property prices is linked to economic and investment growth driven by Saudi Arabia’s Vision 2030 initiatives.

He pointed out that large-scale investments in infrastructure and city development, particularly in major cities like Riyadh and Jeddah, have boosted demand for real estate.

Mega projects such as Qiddiya and developments in entertainment and hospitality have also increased the value of surrounding areas and attracted interest from buyers and investors.

Al-Mousa highlighted that population growth, combined with government initiatives like the “Sakani” program, rising income levels, and stronger purchasing power, have intensified demand for residential properties. Families are increasingly seeking larger spaces and greater privacy, leading to a shift in demand toward villas and spacious apartments.

The evolution of financing mechanisms, including flexible credit facilities and subsidized loan programs, has improved homeownership accessibility. Al-Mousa noted that lower global interest rates have made borrowing more attractive, accelerating purchasing decisions and increasing activity in the real estate market. The expansion of luxury housing projects and developments targeting middle- and high-income families has further driven competitiveness and property price growth.

Real estate marketer Saqr Al-Zahrani noted that Saudi property prices have shown a marked acceleration in the fourth quarter of 2024. He attributed the rise in the general index to the complex interplay of supply and demand dynamics in the market, supported by Saudi Arabia’s recent economic and structural transformations and the influence of foreign investments.