Combating the chaos and confusion that have plagued the real estate sector requires a comprehensive strategy to rectify the sector’s conditions. To curb these distortions, strong determination and insightful thinking are essential to address the root causes of the problem. With these principles in mind, the relevant government agencies have sought to leverage real estate expertise to develop effective and sustainable solutions, making extensive use of technology to create a real estate environment that is as free of flaws as possible.
Last year, the Ministry of Justice launched the Real Estate Exchange to make transaction values available online; It is widely relied upon by stakeholders to analyze market trends and obtain an approximate picture of the value of real estate assets, and it offers economic and statistical advantages in revealing the sector’s strength and investment activity. At the end of last February, the Ministry of Municipal, Rural Affairs, and Housing launched the Rental Index and began implementing it in six cities: Riyadh, Jeddah, Makkah, Dammam, Al-Khobar, and Al-Madinah al-Munawwarah). The index calculates average rental prices for residential units in the neighborhoods of these cities, as well as an average price per square meter for commercial units in those neighborhoods, thereby increasing price transparency, and the contracts concluded in the rental sector, making all real estate transactions (sales, purchases, and leases) transparent to the end consumer—whether a citizen or an investor— who will inevitably benefit from this information in forming a rough estimate of a property’s rental value or in developing a reasonable expectation of the property they wish to rent based on the budget allocated for this purpose.
Therefore, real estate professionals expect that Rental Index to significantly influence the mindset of landlords, tenants, and brokers, and supply will meet demand; this is because technology has become an honest mirror reflecting market realities, laying everything bare for all to see, shortening distances, and stopping the hands of time; and your entire office and advisory services have gone digital—from your cell phone, you can easily determine the right steps to take without any hassle, This certainly does not mean doing without the advice of specialists and experts who will scrutinize contracts closely to ensure there are no clauses intended to be a trap or bait for others.
We hope the Ministry will raise awareness among citizens and investors through seminars, workshops, and training sessions on the importance of utilizing these indicators and how to handle them to achieve the desired benefits.
