Saudi Arabia… O our homeland, may your glory endure, your splendor last forever, and may you rise to the highest heights… O you who, from your golden sands and vast expanses… have built structures, monuments, and skyscrapers…
O you whose wise leadership… has made Vision 2030 a path of knowledge and a beacon, and a ladder to progress and civilization; for a journey of a thousand miles begins with a single step, and every striver, every diligent soul, must reap the fresh shoots and harvest the ripe fruits.
This is evident in the achievements the Kingdom of Saudi Arabia is realizing through Vision 2030—achievements that have encompassed every corner of the country, all its sectors and fields in general, and the real estate sector in particular.
Regulation Makes the Real Estate Sector Number One
This sector has witnessed numerous developments and promising prospects across its various fields, markets, and activities. The Kingdom has therefore provided direct support to it, and special backing to make it a magnet for local and global investment, so that Saudi citizens can own their own homes with the specifications they desire, free from financial exploitation by certain parties, allowing Saudi citizens and their families to live a dignified and peaceful life.
However, this requires determination and resolve to achieve our goals, and in the real estate sector as well, planning, coordination, and organization are essential to achieve the sector’s desired goals, so that it becomes the leading sector among the other development sectors that support and revitalize the Kingdom.
What Does the Real Estate Sector in the Kingdom Need?
This brings to mind the following question: What does the real estate sector in the Kingdom of Saudi Arabia need?
There are important steps that must be taken for the real estate sector to achieve the goals of Vision 2030, including the following:
Increasing the number of apartments and properties available for sale and purchase in the local market, which boosts market activity and drives it forward, thereby creating good real estate opportunities for citizens, contributing significantly to GDP, and supporting the national economy.
Working to attract private-sector investors—including contractors, real estate developers, and housing developers—and encouraging them to establish joint real estate projects with the public sector, and promoting the use of innovative and modern construction techniques, which play a major role in the remarkable development and support of the real estate sector.
Encouraging the creation of diverse employment and business opportunities in the real estate sector, providing Saudi citizens with the opportunity to pursue these careers, and earn a living, especially for young people, thereby helping to reduce the unemployment rate in the Kingdom of Saudi Arabia. When the real estate sector becomes active and flourishes, and begins to take off in a particular region, it will need to meet various housing-related service needs, such as the construction industry, painting, interior design, flooring and roofing, lumber, furniture manufacturing, and many others. Consequently, employment opportunities for Saudi citizens will be far greater than before, and we will rely solely on our local Saudi workforce, without the need for foreign labor.
Developing well-thought-out plans to increase the proportion of affordable housing, develop real estate land, and boost the sale of land, properties, and off-plan units.
Meeting the diverse real estate needs of the Saudi people and providing housing units specifically for Saudi families, thereby ensuring this sector keeps pace with all stages of development the Kingdom is undergoing as part of Vision 2030.
Has the global financial crisis caused by the COVID-19 pandemic had an impact on the real estate sector?
Certainly, the COVID-19 pandemic has had a significant impact on all sectors of the country, including the real estate sector. Lockdowns and the suspension of work activities were major factors in the slight decline of the real estate market, as office work was no longer possible, and the decline in tourism led to a slowdown in the hotel sector.
Nevertheless, the real estate sector remains active, growing, and expanding, due to the urgent need for it at all levels—both individual and collective.
The real estate sector benefits from direct support from the Saudi government, a steady increase in residential units, and continuous development and revitalization by contractors, real estate professionals, and housing developers.
Are there steps that must be taken to ensure the sector’s continued vitality?
There must be plans and regulations tailored to the needs of real estate financing and its growing demands, moving away from clinging to outdated traditional plans that create obstacles and hinder progress.
Today, the real estate market must provide housing products that suit middle-income citizens. These citizens are unable to purchase exorbitantly priced housing and instead always need competitive prices that meet their needs without subjecting them to significant financial strain.
Furthermore, a solid infrastructure must be established, fully prepared to accommodate any investment projects or other real estate developments.
It is worth noting that the real estate sector has the potential to stimulate other development sectors; indeed, it is the real estate market that drives prosperity in any region, as it attracts residents through its competitive advantages, thereby revitalizing and developing the area and drawing investors to it. Therefore, an innovative real estate environment must be created that supports residential units, fosters the development of economic cities, and attracts both local and global investment.
Finally, the Housing and Real Estate Development Authority must be continuously developed to ensure that it meets the growing needs resulting from increasing population density and rising demand for housing units among Saudi families. Consequently, economic support for the national treasury will increase, and the economy will flourish even more.
