Saudi real estate market between transformation and repositioning

Salem Al-Qahtani

<In the midst of the changes taking place in the real estate sector, some confuse the characterization of what is happening, between those who describe the current stage as a recession or crisis, and those who read it as an opportunity to reposition and reprioritize. In my estimation, the Saudi real estate market is not going through a crisis of weakness, but rather is undergoing a deep structural transformation, shaped by a set of policies, reforms and regulations that aim to build a more sustainable, more efficient and more transparent market.

We are moving on. <We are moving from a market driven by impressions and volatility, to one governed by data, governance, white land ordinances, and rapid regulatory changes. This phase has produced many challenges, but in essence, they are not impediments, but tools to regulate growth and ensure its long-term sustainability.

These challenges are not impediments, but tools to regulate growth and ensure its long-term sustainability.

Influencing variables:

To understand this phase more deeply, we need to look at three key themes:

To understand this phase more deeply, we need to look at three key themes:

• Consumer behavior: They are becoming more aware and meticulous in their decisions, checking, comparing, and choosing slowly and carefully.
• Investor Decisions: In the absence of clear indicators of stability, waiting for more clarity.
• The role of the real estate broker: It has not yet kept pace with the required professional transformation and is still in the process of adapting to the renewed regulatory environment, which requires raising the level of qualification and professional accreditation.

Correction, not regression:

<It is important to emphasize that what is happening is not a retreat, but a course correction, rearranging the market from improvised projects to more feasible models, from unlicensed brokers to certified competencies, and from random marketing processes to transparency, digitization, and documentation. It is a transformation that is inseparable from the Kingdom's Vision 2030, and is one of its economic development arms.

In this context. In this context, we must move from a culture of reaction to a culture of understanding and adapting to changes, by building a professional real estate discourse, supported by data, free from exaggeration or negativity.

We must move from a culture of reaction to a culture of understanding and adapting to changes, by building a professional real estate discourse, supported by data, free from exaggeration or negativity.

What do we need today?

To keep up with the shift and steer the market toward proper positioning, there are three essential steps:

1. Realistically reading the indicators away from excessive optimism or unwarranted pessimism.
2. Achieving a balance between protecting the market and stimulating investment, through balanced and clear policies.
3. Moving from reading reports to building effective assessment tools that enable decision makers to intervene at the right time.

Conclusion:

”Our responsibility today is not to wait, but to actively contribute to shaping a more efficient and sustainable real estate market, so let's be part of this transformation, not bystanders.“

The real question is not whether the real question is whether the real question is whether the real question is whether the real question is whether the real question is whether the real question is whether the real question is the real question. <The real question that should be asked today is not: ”When will the market recover?" Rather: Are we ready for the next phase of the market?

Member of the Real Estate Committee - Riyadh