Mr. Abdulaziz Al-Issa, editor-in-chief of Amlak Real Estate Newspaper, revealed that the high prices of housing units that exceeded the purchasing power of the citizen, and the high construction costs led to the exit of some real estate developers from the market, leaving behind stalled projects, which increased the distortions of the real estate sector, and Al-Issa ruled out at this stage the entry of new developers in the market; attributing this to several reasons that led to the citizen's reluctance to buy due to the disproportion between supply and demand.
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Macroeconomic impacts
This came during a real estate program hosted by Al-Eqtisadiya channel, recently, to talk about the current real estate situation, where he started his talk with several factors affecting the economics of real estate, the most important of which are location, market position on supply and demand, neighbors and age, indicating housing preferences according to variables and human interests such as (proximity to schools, work and markets), indicating the desires of those who are important in the prime age are different from those of retirement age.
The editor-in-chief of Amlak newspaper briefly highlighted the macroeconomic impact on real estate while stabilizing other variables, indicating that that this is based on the national product that was based on the oil economy, and now the state is working on an economy that seeks to diversify sources of diversified income, stressing that real estate is affected by shrinking sources and income growth, as the market revives with liquidity and increased income sources.
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The real estate market is heading towards positivity
Mr. Abdulaziz Al-Issa insisted on the usefulness of new legislation and regulations in contributing to the provision of appropriate housing for the welfare of the Saudi citizen by increasing the ownership rate and achieving the goals of 2020, indicating the effectiveness of the state's approach represented by the Ministry of Housing to facilitate the work of real estate developers and investors in general by encouraging them through various programs (completion - Wafi), Al-Issa stressed that the coming period will witness an improvement in the performance of the real estate sector as a result of a package of factors such as activating the new housing ministry legislation and starting to apply white land fees, The liquidation of many troubled contributions, granting the Real Estate Contributions Committee the authority to file lawsuits, and stopping corruption will increase the confidence of investors to enter the market without fear for their rights, in addition to the activity of real estate developers in pumping their housing units; all these factors will work to increase the supply of various and different specifications, which makes it directly contribute to improving the performance of the sector and in the interest of the citizen, in addition to the travel of many foreigners, which will leave behind large numbers of vacant units.
<p class="p1Al Rajhi Auctions and Clearing the Fog
Rajhi Auctions and Clearing the Fog
Through his speech, Al-Issa emphasized that the auctions of the estate of Sheikh Saleh Al-Rajhi, may God have mercy on him, created a great movement in the market, and it is by all measures successful and led to positive results by stimulating the establishment of auctions and clearing the state of uncertainty because the market is able to seize investment opportunities, Al-Issa attributed the success of Al-Rajhi auctions to the supervision of a governmental body overseeing the auction, and called for the generalization of the idea by the presence of a representative of the Ministry of Housing and Justice in all auctions until the excesses of some owners in manipulating prices disappear.
<p class="p2About the current market situation, the editor-in-chief of Amlak Real Estate Newspaper said that the situation is different from the previous; where we since 2008, we encouraged entering the real estate market, because of our proximity to it, However, many activists on the sites led a campaign not to risk investing in the sector, and it affected the transfer of funds to other investments, and now the situation is different from before, although there are investment opportunities, but the low income of the citizen remains an obstacle to the growth of real demand.
