The real estate sector has witnessed many transformations that have led to the creation of a new market governed by regulatory laws and regulations that work to correct the distortions and protrusions that grow in the sector and hinder reform and correction.
With a sound and strategic understanding of the future economy, we find that the compass of real estate development It is moving towards large and high-quality projects that their owners and partners are proud of and boast about, placing them at the forefront of their resumes and at the top of the company profile as a symbol of success and ambition. This happens without planning. Large projects attract major developers and those with experience, vision, and creativity. Housing projects throughout the Kingdom are being awarded to companies that spend lavishly on the infrastructure to transform desert lands into cities and residential suburbs. The Ministry of Housing has received thanks and appreciation, after previously being the subject of ridicule in the real estate market, which saw only paper houses. The Ministry's challenge in solving the housing problem has led it to take the private sector as a right hand and partner in projects that have begun to bear fruit. It announces that more than 1.2 million families have benefited from these solutions, and more than 186,000 families have moved into their homes. News reports indicate that more than 58,000 families have preferred self-build. These figures and others certainly concern real estate developers and motivate them to study the market from a different angle than that of the traditional real estate developer, who will find himself outside the group that plays a role in the sector.
This is how the market will move towards the big players; towards the houses of expertise that are not affected by the compelling circumstances that may stop work, such as the “Corona pandemic.” In previous years, we made open invitations to form strong smart partnerships to keep pace with the requirements of the times.
Here we note that most large deals are done through alliances. A good example of this is the purchase of the Qatif shareholding last Wednesday through an alliance that paid more than 4 billion and 197 million riyals. The surprise is not the large amount, but what do the buyers think about with a land area that exceeds 5 million square meters? It will certainly be a large project.
