The real estate market continued its recovery, leaving behind the prolonged periods of stagnation that had plagued it, following the success of the Riyadh Murad Saraya auction organized by the Abdulrahman Salman Al-Halafi Group yesterday evening at the Takhassusi Hall in Riyadh, where businesspeople, investors, and developers gathered to compete in the auction. The event yielded positive sales results, exceeding expectations by 30%, with 80% of the properties up for auction sold.
A prime and strategic location for the development
For his part, Abdulrahman bin Salman Al-Halafi, Chairman of the Group, emphasized that the development is distinguished by its full range of services; it is located within the urban area but outside the scope of the first phase of land fees, The project is situated along Riyadh’s major thoroughfares, stretching along the commercial corridor on King Fahd Road (east), Al-Olaya Road (west and east), and King Abdulaziz Road (west). It includes a variety of land uses designated for villas, residential buildings, as well as commercial and investment sectors. This diversity of land uses is therefore expected to benefit both developers and individuals seeking to own and reside in the residential expansion area extending northward from Riyadh.
2,350 riyals per square meter for commercial space and 1,000 for residential space
The auction revealed the market’s and the real estate community’s desire to stimulate the market and dispel concerns; the price per square meter for residential space reached 1,000 riyals, while the highest price per square meter for commercial space was 2,350 riyals for a location on King Fahd Road.
At the start of the auction, nine blocks were sold in their entirety, covering an area of 90,311 square meters, at a price of 1,000 riyals per square meter. Block No. 1, which consists of two lots and marks the beginning of the development—and is considered the most expensive block due to its strategic location at the intersection of King Fahd Road, Jamal al-Din Abu al-Makarim Street, and a cross street—was sold at 2,350 riyals per square meter.
Commercial Block No. 5 was also sold; the auction closed at 2,250 riyals per square meter for 6,587 square meters. It is located at the intersection of four streets, the most important of which are Al-Olaya General Street and Jamal al-Din Abu al-Makarim Street, as well as two side streets.
Continued Need for New Development Plans
Abdulrahman bin Salman Al-Halafi noted the opportune timing of the auction, which followed an analysis of market conditions and demand, especially given that a large number of real estate development companies are moving to construct residential units in line with the Ministry of Housing’s approach, which relies on partnerships with the private sector, and is also consistent with the desire of many companies to build residential complexes consisting of villas and apartments whose prices are compatible with the subsidized financing products available to eligible applicants on the waiting lists of the Real Estate Development Fund.
Al-Halafi emphasized the need to create residential developments with comprehensive services and affordable prices, free from speculative construction, and—most importantly—located in areas that attract residents and offer all necessary services, At the same time, he expects the Saraya Riyadh project—given its level of development and services—to help fulfill the aspirations of both developers and individuals, thanks to its prime location near major government complexes, public and private universities, and the new headquarters of major companies in northern Riyadh.
