The real estate sector welcomed the Public Investment Fund’s decision to establish a refinancing company with a capital of 75 billion riyals, aimed at boosting the real estate sector’s performance and increasing investment opportunities by providing the necessary liquidity. and projections suggest the capital could grow to 170 billion riyals.
At the same time, experts and specialists have refuted rumors circulating about an expected collapse of the real estate market due to the impact of new regulations and decisions, Experts questioned how this vital sector could collapse when the government is injecting 75 billion riyals into one of its lifelines to help finance and stimulate development, particularly in the housing sector. The benefits of establishing this company at this specific time underscore the strength and stability of the real estate market, especially since government agencies possess the statistics and strategic studies upon which they base their economic decisions.
A real estate expert, who preferred to remain anonymous, called on social media activists to exercise accuracy when raising issues that touch on the very lifeblood of citizens. He explained that information of questionable accuracy has found its way onto social media pages, pointing to (the extraction of 2 trillion from real estate assets) and rejected the notion that real estate assets are securities ready for liquidation, emphasizing that real estate is an important pillar and a key driver of the economy, with more than 200 related industries tied to it.
Tweets had circulated from unverified accounts regarding the prices of duplex villas, claiming that the price of a villa is 300,000 riyals; however, this amount does not even cover the cost of construction, which amounts to 1,000 riyals per square meter; given that the buildable area is no less than 400 square meters (meaning the construction cost alone would be 400,000 riyals—where is the land price, and where are the profits?)..
The expert recommended seizing the right opportunity to purchase a villa as soon as one has the funds available or can make the down payment and has approval from a lender—do not hesitate, because we do not know what future market changes may bring; prices may rise, or lenders may become more restrictive —especially since, as one gets older, financing options become more limited, and a home is, after God, a guarantee for the family.
