The first thing that surprises the visitor is that the scheme takes on the character of a residential oasis with the density of palm trees that embrace it until it borrowed its name from it. But Abdullah Al-Tuwaijri says that this magnificent view is only the external part of the project, the most important is its infrastructure, the company took care of the infrastructure until the cost per square meter of the project reached 55 riyals, including the construction of electricity, water, telephone and sewage networks, afforestation, gardens and securing places for public utilities and services.
Dialogue - Hamad Al-Farhan
[I first asked my host about this strange name: Why did you name the plan Tala? After discussions with the partners, we decided to launch this name, as it is rarely used on the one hand, and it means the small palm, and the project is full of small palm trees.
[What are the elements of the success of the project in general? First: The project is located north of Riyadh and on the main road axes, namely the Takhassusi Road, Abu Bakr Road and Imam Saud bin Muhammad Road, as well as its proximity to universities, as it is very close to Imam University and close to Riyadh University for Girls and Dar Al Uloom colleges, and it is not far from King Saud University. In addition to its proximity to King Khalid Airport. Secondly: The completion of the project's infrastructure, represented by electricity, telephone, water and sewage services, which reaches Othman bin Affan Road. As a result of this keenness to integrate the infrastructure components on the best specifications, the cost of developing a square meter in the project amounted to more than 55 riyals, which is 50% more than its cost in other projects.
[You chose to start selling in the scheme during Ramadan, which also coincides with the summer vacation, didn't you expect people to react poorly to the sales process? The sales process was not affected by these two circumstances, as the long evening period was sufficient and suitable for many people, and the sales period extended from nine in the evening until two in the morning. We found, thank God, a demand for the project.
[Have national or Gulf companies applied to buy the project or part of it? Yes, there are several offers submitted by Gulf companies, and the company studied them but did not agree to any of them, due to their desire to re-divide the land to condense the residential units, which contradicts our objectives of the project itself. We are now in the process of studying an offer submitted by a French-Emirati company.
[Which spaces are most in demand from buyers? The project has allocated 47% of its area to meet the desires of individuals in order to facilitate their access to the lowest price and prevent the speculation of real estate brokers in the scheme.
[I noticed that there are many gardens spread throughout the plan, will they be doomed to perish as palm trees do in many plans, or is there a mechanism to ensure their continued care?
When planning the project, the company took care of the environment and green spaces and allocated 94,000 m2 with paved paths for pedestrians, irrigation network, seating areas and trees.
In fact, I have been thinking for three years about implementing the idea of a neighborhood owners' association, which sprouted in my mind after I participated in several real estate contributions. The idea of the association is based on deducting part of the cost of selling the land after the buyer's approval to establish an investment endowment to finance the operation and maintenance of the neighborhood, and contribute to providing other services to the residents of the neighborhood such as transportation, security, etc.
The idea has already been put forward and found a good response from many buyers, so we started preparing the organizational regulations of the association. Also, the state encourages the establishment of such associations, as a royal decree was issued in 1423 AH to regulate the ownership and sorting of real estate units, and the idea received the attention of the Riyadh Municipality.
[Are there financing companies that contribute to providing facilities for buyers? Yes, several banks offered their desire to provide their financing services, and after studying the mechanism of their facilities and conditions, the company agreed to the offer of Riyad Bank and has already started its services.
[What is the company's approach towards commercial land and spaces for schools and when will it be offered? As for schools, the company will offer them to specialized investors who have licenses and experience in the field of operating private schools to better serve the residents of the neighborhood, and as for commercial lands, the company is studying offers from commercial companies to choose the most suitable for the neighborhood and the region in general.
[Finally, in your opinion, what is the extent of the impact of the financial market crisis on the real estate market, positively and negatively? I do not find any negative impact on the real estate market, the volume of demand did not weaken due to the collapse of the stock market, on the contrary, the demand for real estate investment has increased, and I see a prosperous future for real estate, as everyone knows it is the safest and least risky area of investment.
