It is reported that the liquidation of the estate of Sheikh Saleh Al-Rajhi - may God rest his soul - will begin to enter the auctions in mid-February, and this announcement has been awaited by those interested and specialists with great anticipation and caution since his death in 2011 because they know the ins and outs of the real estate market at the present time; due to many considerations and developments in both the market and regulatory aspects.
Although the liquidation board of the estate of Sheikh Saleh Al-Rajhi is working to divide the sale of the estate into separate auctions as a kind of planning so that the market price is not affected by the large supply of the estate, Al-Rajhi properties and lands are considered one of the unique offers that are not repeated in the real estate market in the Kingdom due to their strategic income-generating locations and their diversity between residential, commercial and raw lands, The question that revolves in the minds of many is whether the local market has enough liquidity to match the supply that will be created by the auctions of the estate, which observers estimated its raw lands only at 110 million square meters? This is in addition to developed properties, commercial centers and residential complexes, especially those that have been announced to enter the auction during the next six months, these auctions will definitely swallow up the remaining liquidity, which pushes it to create the required balance in the compass of supply and demand if all or most of the estate that will be distributed to major investors, traders and companies.
On the other hand, such major auctions will flood the market with an offer that will not settle for falling prices to compete with each other, but will maintain as much as possible its market value despite the current recession and falling prices, not only because it generates income, but "real estate has its prestige" because it represents the property of Sheikh Saleh Al-Rajhi and not auctions for which bells are ringing So the real competition between businessmen will be in providing adequate financing for the upcoming real estate wealth, and this in itself will put banks, real estate portfolios and alliances in a difficult test that will strive beyond their capacity to meet the requirements of the financial stage so that we do not hear those who say "the thought of one real estate man toppled an entire community."
<p class="p1From a third angle, which is the most likely and positive, which is the expectation that Gulf and international companies will enter the completion of deals to bridge the financial deficit and provide financing for them, especially in strategic properties and major commercial centers that have been announced.
We hope that real estate and financing entities will succeed in the upcoming "auction exam" by forming various alliances and partnerships that preserve the market's prestige and balance.
Editor-in-Chief
