In the rapidly evolving residential real estate market, many buyers face an unexpected shock upon receiving their units: the actual size is significantly smaller than advertised. This phenomenon, known as the "space gap," is not simply a miscalculation, but rather a consequence of marketing practices that exploit the lack of standardized space calculations.
The root of the problem: between marketing and the instrument
The core problem lies in the deliberate confusion between "gross area" (which includes common areas , setbacks, and unregistered roofs) and "net area" (the area actually registered in the title deed). In many cases, an apartment is marketed as 200 square meters, while the area registered in the title deed is no more than 140 square meters. This discrepancy, which can reach 30%, means that the buyer is paying exorbitant sums for square meters they do not legally own.
Circumventing occupancy permits
The problem is exacerbated by some developers resorting to irregular practices, such as closing off side setbacks or adding roof extensions after the issuance of the occupancy permit (building completion certificate). These modifications, although they increase the usable space on the surface, are not registered in the deed, which exposes the owner to serious legal and financial risks, including municipal fines and the obligation to remove the violations at his own expense.
The actual cost per square meter
When calculating the actual cost based solely on the area registered in the title deed, the buyer discovers that the price per square meter is significantly higher than anticipated. For example, if a marketed apartment of 160 square meters is purchased for 1.2 million riyals, the advertised price per square meter is 7,500 riyals. However, if the area registered in the title deed is only 120 square meters, the actual price jumps to 10,000 riyals per square meter. Taking into account the risks of demolition and fines, the true cost could exceed 11,500 riyals per square meter.
International comparison: The need for rigorous standards
When comparing the local market to global markets such as Dubai, the UK, and Australia, we find that these countries apply strict standards requiring developers to disclose net area separately from common areas or balconies. In Dubai, for example, net area is precisely defined, and severe penalties are imposed for any misleading information in real estate marketing.
Opportunity for transparent developers
Despite these challenges, a golden opportunity emerges for real estate developers who embrace transparency as a core value. A developer who clearly discloses net area and additional space builds lasting trust with their clients, reducing legal disputes and enhancing their market reputation. Transparency is not merely a legal obligation; it is a competitive advantage that ensures business sustainability in an increasingly informed market.
Summary
Addressing the " space deception " requires a concerted effort from regulators to standardize measurement criteria, developers to embrace transparency, and buyers to increase their awareness of their rights. Only through complete transparency can we build a healthy and sustainable real estate market that protects individual investments and fosters trust in the sector.
