Real estate auctions. Solutions to market challenges

Abdulaziz Alissa
real estate auctions are a dynamic and vital tool in the Saudi market, working to bridge the gap between supply and demand and facilitate buying and selling operations with high efficiency; it gives real estate assets the opportunity for rapid trading and offers practical solutions to the issues faced by owners, such as the urgent need to monetize assets or sell a property facing challenges in the traditional market, this acceleration in trading effectively contributes to the revitalization of the real estate market and gives greater flexibility to investors and sellers alike.
Auctions play a pivotal role in stimulating the market and attracting investment, thanks to their ability to enrich the spirit of competition between buyers, this competition ensures a fair price for both the owner and the buyer, as auction participants often have a deep understanding of the real market value of the property; this makes buying from auctions a valuable opportunity that may not be available in traditional sales platforms, especially since real estate, by its nature, is a commodity and a product that does not disappear over time, which enhances its attractiveness to long-term investors.
With the development of technology, electronic auctions have gained prominence, expanding the participation map like never before, and interested parties can easily complete their transactions from anywhere, adding a new layer of efficiency and comprehensiveness to the Saudi real estate market.
The future of real estate auctions in the Kingdom shows a major shift, as the importance of online auctions grows to become a key pillar alongside their traditional counterparts, this development enhances transparency and speed in completing deals, and expands the base of participants to include investors from different regions, increasing the efficiency of the real estate market as a whole.

Data reinforces the power of auctions

The data of the real estate exchange of the Ministry of Justice reflects the strength of this market, as the value of real estate transactions in Saudi Arabia exceeded 2.5 trillion riyals «about 533 billion dollars» for more than 622 thousand transactions in the past year 2024, and on an area extending to about 5.8 billion square meters, and the number of traded properties exceeded more than 520 thousand. These figures confirm the status of auctions as an indispensable tool in the growing real estate scene, and contribute to achieving the targets of the Kingdom's Vision 2030 to promote economic growth.