An economic study prepared by the Information and Research Sector at the Riyadh Chamber of Commerce on “the reality of real estate sector establishments in Riyadh” called for a number of reforms in the real estate affairs and the development of the working environment in the sector and the issuance of a number of legislations to address the distortions of the real estate market and address the most important obstacles that stand in the way of investment in it.

Riyadh Chamber of Commerce, Riyadh.

Real estate regulations

The study recommended the activation of real estate systems, especially the real estate registration system and the consideration of 30% as a down payment for real estate financing, and the study called for a review of real estate regulations and legislation, and the adoption of legislation necessary to stabilize the real estate market and amend the regulations and laws that hinder its development, and emphasized the importance of encouraging investment in the real estate field by providing incentives and benefits to investors and limiting the decisions and regulations that hinder investment in the sector.

Recommended the activation of real estate systems, especially the real estate registration system and the consideration of the percentage of 30% as a down payment for real estate financing.

52% licenses for real estate offices

<The study revealed that construction licenses for the year 1433 for various uses in Riyadh reached (29757) licenses compared to (112362) in the Kingdom, equivalent to 29.3% of the number of licenses granted in the Kingdom, indicating that the average annual growth rate in the contribution of the building and construction sector to GDP was about 7.The study, which included (876) establishments in Riyadh, showed that real estate offices represent 52% of the sector's establishments, while companies represent 40%, and the majority of the sector's establishments practice more than one real estate activity, where real estate rental activity comes at the top of these activities with an average of 36.17%.

Recommendation to encourage concessionary financing

The study called for not selling or marketing real estate plans until after the delivery of public services to them, explaining that it is considered one of the most important factors determining the sale prices of real estate and land, followed by the availability of tranquility and proximity to major projects. The study also called for limiting the high prices of building materials and labor in the field of construction and construction and encouraging government and private financing bodies to grant investors soft financing for the purpose of developing the sector and providing housing by reducing the interest rates they receive and providing state support for citizens to purchase real estate,

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Monitoring and prosecuting fictitious companies

<The study also called for intensifying the role of regulatory agencies and chambers of commerce in monitoring fictitious offices and companies in the sector as well as fictitious installment companies, stressing the importance of issuing new legislation for the success of real estate activity and eliminating monopolies, calling in this aspect to amend building regulations and consider building heights on the main streets and consider vertical and multi-storey construction, especially in the residential sector in new areas and neighborhoods, in addition to reviewing real estate licensing laws, standardizing rental contracts and real estate sales contracts, indicating the importance of establishing a real estate authority to manage and regulate the real estate sector.

Necessity of merging real estate companies

<The study also called for the state to encourage the establishment of large real estate development companies through the merger of companies and real estate offices because of their importance in providing real estate products for all segments, as it explained in this aspect that individual institutions account for 62% of the total sector establishments, followed by limited liability companies with 31%, while closed joint stock companies come in third place with 3.9% and solidarity companies.The study indicated the importance of creating a real estate information base that monitors what is happening in the real estate market and establishing a transparent information network that connects all real estate offices and companies, pointing out the importance of qualifying workers in real estate companies and offices by providing specialized training courses in the real estate sector.

The study pointed out the importance of qualifying workers in real estate companies and offices by providing specialized training courses in the real estate sector.