The real estate market is awaiting the implementation of the "Real Estate Advertising Regulations" issued by the General Authority for Real Estate's board of directors and published in the official gazette, effective September 1st. According to the Authority, these regulations aim to curb misleading advertisements related to the real estate sector, thereby enhancing its credibility and raising the level of trustworthiness of advertising platforms.
The era of real estate speculation is over
“Amlak Real Estate Newspaper” conducted a survey of experts, specialists, and real estate professionals regarding the impact of implementing regulations on the real estate market in the Kingdom. Abdullah bin Nasser Al-Ateeq, director of Al-Ateeq Real Estate Office in Al-Ahsa, said that the regulations will undoubtedly affect real estate sales, pointing to the impact on the quality of advertisements, whether for buying or selling, inside and outside the urban area, by removing properties that are speculative and have no credibility and negatively affect the market.
Al-Ateeq: "The regulations will negatively impact real estate speculation."
A qualitative leap for the real estate market
Al-Aboudi bin Abdullah, the "Real Estate Housing Incubator," believes that these regulations will contribute to increasing transparency by displaying the full details of offers, including prices, specifications, and location. The buyer will know that the offer in front of him is a genuine offer presented by the owner or someone he authorizes in writing for a specific period to market his real estate product, and that this product is offered for sale at the mentioned price. This in itself is a qualitative shift for the real estate market. He pointed out that these regulations will work to control the market from price manipulation because the advertiser is a Saudi through the National Access Platform and is authorized directly by the owner. Otherwise, he cannot advertise after 25/1/1443.
Abdullah: Providing full details will increase transparency for the buyer and protect the market from manipulation.
Al-Aboudi describes the new standards for real estate platform licenses as excellent and organized, and their connection to the National Access Platform is something special. In addition, they are precisely compatible with the regulations for real estate advertisements, and the advertisement will be presented completely and truthfully through them with all its specifications from the location to the determination of the price. Clearly, the real estate market will need a healthy regulatory correction period, whether for establishments, individuals, or real estate platforms, to keep pace with this wonderful technical and professional development. Certainly, all those interested in the real estate market will witness that the date 25/1/1443 will be a dividing line from what was happening before it in the market.
Abdullah: "Everyone will witness that the date 25/1/1443 will be a turning point in what was happening in the market before it."
The exit of random marketers
Real estate consultant Matar Al-Shammari believes that one of the most prominent benefits of implementing these controls is the exit of random marketers from the real estate market, in addition to preventing randomness in prices by knowing the real market price, in addition to the clear responsibility on the real estate marketer, as he bears full responsibility for everything that is offered through him, and this is a positive thing that regulates the market correctly.
The regulations hold the real estate marketer responsible to the buyer.
Raising the level of reliability in the real estate sector
For his part, Muath Khalid Al-Fawzan, of Aqalim Najd Real Estate Company, affirmed that the real estate sector is of great importance to society and a pillar of development. Accordingly, regulations and legislation drive growth, and compliance with the general guide to advertising content regulations, as well as what is issued by the competent authorities, certainly creates transparency and professionalism and limits fake advertisements.
Al-Fawzan believes that these controls will contribute to controlling prices and disclosing real estate information and data in accordance with what the controls stipulated in terms of seeking truth and honesty and the new standards for platform licenses issued by the General Authority for Real Estate and its classification is to enhance the governance of the sector and contribute to organizing and raising the level of its reliability and reducing random sales operations and implementing the comprehensive strategic plan for the real estate sector and achieving the Authority’s vision for the real estate sector to be attractive, vibrant and characterized by trust and innovation.
Governance in the real estate sector contributes to making it attractive, vibrant, and characterized by trust and innovation.
The Board of Directors of the General Authority for Real Estate had launched the project through the Saudi Survey Platform in the first quarter of this year with the aim of protecting and preserving the rights of the public and reducing randomness in real estate advertisements, in addition to setting the necessary controls to regulate what is published in all regulatory means. The project regulates the duties and prohibitions of real estate and electronic advertising.
The regulations include that the advertiser must be a Saudi national, that advertisers must be registered through the National Access Platform, or that the advertiser must be the owner of the property or an agent of the owner by virtue of a legal power of attorney, or a real estate broker by virtue of a written authorization or a court order, as well as the necessity for the advertisement to include the name and title of the advertiser or a legal entity licensed to conduct business in the Kingdom.
