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Opinions on the idea were mixed... «Amlak» is considering the creation of real estate funds to facilitate the divestment of existing properties

Real Estate Investment Trusts (REITs) - 1

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The newspaper «Amlak» has observed a new trend in the market toward the creation of real estate funds, some of which aim to divest from existing properties due to low liquidity and a lack of buyer interest, especially as more investment opportunities emerge, The newspaper’s field team explained that there are real estate funds planning to exit the market by selling their various properties, such as residential and commercial complexes; They attributed this to the market weakness that has persisted in recent months due to several factors, most notably changes in the investment landscape and the impact of the value-added tax following its increase to 15%.

Some followers of the «Amlak» Twitter account predicted that liquidity would flow into the stock market, which they described as the right direction, given that the average daily trading volume is approximately 13 billion riyals, while others rejected the idea of a collapse, arguing that the real estate economy serves as the solid foundation upon which other sectors are built. They emphasized that the market remains resilient and that the entire sector cannot be judged based on the decisions of individual investors, whose perspectives may be right or wrong.