A number of real estate experts have highlighted the real estate market’s ability to attract capital to boost and expand real estate investments, positioning the real estate sector as the largest and most effective incubator of resources in the Kingdom after the oil and gas sectors, The experts noted that the current uncertainty in the market is temporary, emphasizing its ability to withstand challenges resulting from market volatility on one hand, and the slowdown in the growth of real estate projects in the private sector on the other.

Price declines will affect everyone

At the same time, experts warned of a decline in real estate prices that will cast a negative shadow over all stakeholders in the sector, including the end-users of real estate products, who will inevitably be affected by the quality and standards resulting from lower prices, as well as the financing sector, which may become reluctant to provide financing. Those interested in real estate renewed their confidence in the market, noting that the sector has begun to recover, albeit somewhat slowly, Meanwhile, the Ministry of Housing’s partnership with real estate development companies to develop residential projects is expected to revitalize the sector in the coming period. To reinforce this trend, the Ministry has pledged to announce its new projects and developments in the middle of each calendar month, which will prompt the Ministry to intensify its housing projects in the coming period. This may require expanding the scope of the partnership with the private sector, which will consequently improve the sector’s performance and revitalize its projects.

Return of Overseas Funds

For his part, Dr. Abdullah bin Hamad Al-Mashal, Chairman of Hamad Al-Mashal & Sons Holding Group, affirmed that the real estate sector will remain the optimal and safest investment, noting that small investors in the Kingdom have poured their funds into the real estate sector, believing that this sector is the best and most suitable for them. Dr. Al-Mashal explained that the economic landscape in the Kingdom and globally reinforces the real estate sector’s position as an ideal investment vehicle compared to other investment vehicles.

Dr. Al-Mashal explained that the migration of funds to other sectors is temporary and linked to sudden surges in those markets, but that funds quickly return to the real estate market because it is the safest and most profitable option.

Dr. Al-Mashal noted that it is in everyone’s interest for the sector to remain stable, maintain its prices, or achieve reasonable growth, pointing out that a citizen who purchased a plot for 500,000 riyals hopes its price will rise above that amount, and would suffer greatly if the price drops to 400,000 or 300,000 riyals. The same applies to real estate investors. Furthermore, rising or falling prices affect those who own homes through financing, and as everyone knows, there are many of them.