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After the approval of the Real Estate Commission 30% real estate entities are expected to exit the market

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Sources and real estate experts have warned that the establishment of the General Real Estate Authority could have a significant impact on the real estate market, particularly on micro-enterprises, Experts and observers predict that the implementation of the new regulations and rules for establishing the Authority will lead to the exit of 30% real estate entities from the market, particularly real estate agencies—approximately 10,000 agencies— This is due to the large number of unlicensed agencies that have been operating in the market for many years. Sources noted that 30% of real estate agencies in Saudi Arabia are operating illegally and are employing undocumented foreign workers.

Statistics show that the number of real estate establishments exceeds 39.5, (90%) of which are small enterprises, accounting for approximately (4.1%) of the total number of enterprises in 2015, According to the 2015 Annual Economic Survey of Enterprises, the number of Saudi employees in real estate activities was approximately (74.5) thousand, equivalent to about (48%) of the total workforce in this sector. The Authority aims to increase the proportion of Saudi workers in the real estate sector, noting that this comes against the backdrop of a population growth rate of (2.54%) in the year (2016) and an increase in the proportion of the population in the age group between (15) and (34) years to approximately 53%..