The General Real Estate Authority has issued a number of new licenses to practice marketing and sales activities for off-plan real estate projects to real estate developers from local, regional, and international companies, from the time the regulation took effect in April through mid-May of this year, with a total of 5,441 residential and commercial off-plan real estate units distributed across several regions of the Kingdom, covering a total area of 2.8 million square meters, and with an estimated market value of approximately 6 billion riyals, The Authority added that, according to the feasibility studies submitted for the licensed projects, the first project is expected to be delivered in the fourth quarter of 2025, and all of the aforementioned projects are expected to be completed by the end of 2028.
It is worth noting that the number of projects licensed for off-plan sales over the past 15 years has exceeded 390 projects, comprising more than 241,000 residential units with a total area of nearly 1.7 billion square meters and a market value of more than 352 billion riyals, which reflects the growth of the real estate development sector in the Kingdom, where there is increasing competition in offering real estate products and urban suburbs designed in more innovative and modern ways to meet the diverse requirements and needs of Saudi families.
The General Real Estate Authority affirmed that the real estate sector represents fertile ground for attracting investments and investors from around the world, and that real estate legislation governing the sale and lease of off-plan real estate projects has contributed to increased transparency and reliability by ensuring the professionalism and competence of those working in the sector, the requirements and criteria it has established for classifying developers, and the rules and provisions designed to protect the rights of all parties.
It should be noted that the regulation of off-plan sales and leasing was overseen by the Off-Plan Sales and Leasing Committee, comprising representatives from the Ministry of Municipal, Rural Affairs, and Housing; the Ministry of Justice; the Ministry of Commerce; MODON; the Central Bank, and two members from the private sector. Following the issuance of Royal Decree No. M/44 on March 10, 1445 AH, approving the regulations for the off-plan sale and lease of real estate projects, the General Real Estate Authority became the competent authority for enforcing the provisions of the regulations. The new regulations entered into force on April 4 of this year, 2024 AD.
