The official spokesperson for the General Real Estate Authority, Mr. Tayseer Al-Mufarraj, during his participation in the Real Estate Brokerage Forum in its third edition, that the Authority is continuing to enhance the efficiency of the real estate brokerage sector by developing legislation, strengthening oversight, and improving the quality of professional training, in addition to launching new initiatives aimed at improving brokers“ performance and raising the standard of services provided in the market.
Compliance Indicators in the Real Estate Market Have Improved
Al-Mufarraj explained that compliance indicators in the market have shown a marked improvement in recent times, noting a decline in cases involving unlicensed practitioners compared to the situation about two and a half years ago, He urged market participants to report any violations and to refrain from dealing with unlicensed practitioners, noting that raising awareness is one of the most important tools for curbing violations.
He added that the Authority relies on several oversight methods, most notably the ”mystery shopper," who contacts real estate advertisers to verify their compliance with regulations, and if any violation is detected, regulatory proceedings are initiated against the violators. He emphasized that both on-site and electronic monitoring are ongoing, and that the cooperation of clients contributes to eliminating violations. He noted that the real estate brokerage system, despite being recently implemented, has achieved a high degree of maturity thanks to the support it receives from the real estate sector, explaining that the results achieved over the past three years reflect the success of the legislative framework and the high level of compliance and confidence in the market.
Real Estate Transactions Exceed 1.6 Trillion Riyals
Al-Mufarraj revealed that the total value of real estate transactions since the system’s implementation on July 18, 2023, has exceeded 1.6 trillion riyals, while the number of sales and lease transactions exceeded 13 million, real estate listings totaled more than 1.2 million, and the number of brokerage contracts signed surpassed 1.1 million during the same period.
He added that the number of licensed real estate brokers reached 117,000, noting that these figures reflect the strength of the Saudi real estate market, its rapid growth, and the high level of confidence among market participants.
As part of efforts to develop vocational training, Al-Mufarraj announced the launch of a new track for real estate brokerage levels, which includes five training courses followed by a single comprehensive exam administered in person at National Center for Assessment centers located throughout the Kingdom, rather than remote exams, with the aim of improving the quality of training outcomes and ensuring the competence of practitioners. He also announced the introduction of a diploma in real estate regulations and legislation, an optional program designed to enhance real estate brokers” regulatory knowledge and open new avenues for work in real estate consulting, with implementation set to begin in the near future.
Improving the Quality of Professionals
He emphasized that the Authority is no longer focused on increasing the number of licensees as much as it is on improving the quality of professionals, explaining that the next phase will target the most qualified brokers who are capable of providing professional services, especially given the significant expansion of the real estate market and new legislation, including the system allowing non-Saudis to own real estate. Al-Mufarraj noted that real estate awareness remains one of the most significant challenges facing the sector, among both brokers and clients, noting that the Authority is working with real estate agents to implement awareness initiatives, including projects aimed at raising awareness among property owners and real estate content creators about best practices in the market.
Updating Regulations and Rules
On the legislative front, he explained that the Authority has largely completed the development of the sector’s regulatory framework, and that the next phase will focus on updating regulations and systems to keep pace with rapid market changes, rather than merely issuing new legislation. Al-Mufarraj also announced the start of implementing a classification system for real estate brokerage firms and real estate auction houses based on criteria including years of experience, the number and value of transactions, compliance levels, and the number of training courses, as well as the size of the firm, its branches, and its staff. Firms will be classified into five categories, and the classification will take effect starting February 1, 2027, following the publication of classification guidelines and a period allowing firms to conduct self-assessments. Regarding real estate advertisements, Al-Mufarraj revealed that celebrities and content creators are required to obtain a “FAL” license in addition to a “Mawthuq” license before publishing any real estate advertisement, following coordination with the General Authority for Media Regulation. He emphasized that the "Mawthuq" license alone will not be sufficient to engage in real estate advertising.
Keeping Pace with the Digital Transformation
He emphasized that the Authority continues to keep pace with the digital transformation, noting that the Saudi PropTech Center is working to embrace modern real estate technologies and study innovative solutions within a regulatory sandbox environment, thereby ensuring that regulations are developed to keep pace with artificial intelligence applications and emerging technologies.
In closing, Al-Mufarraj emphasized that the future of real estate brokerage in the Kingdom is promising, given the new legislation, the expansion of real estate products, and the increase in investment opportunities. He stressed that success in the coming phase will go to brokers who develop their skills, enhance their knowledge, and provide a professional experience that exceeds clients" expectations.
