These days mark the eleventh anniversary of the accession to the throne of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, may God protect him; eleven years of «determination and resolve» during which the Kingdom has made great strides toward achieving the goals of «Vision 2030,» to the point where quality of life has become a tangible reality for citizens, who are experiencing its achievements under the wise leadership and close supervision of His Royal Highness the Crown Prince—may God protect them both.
In this flourishing era, the real estate sector has seen the completion of its legislative framework, which has reinforced the practical and scientific value of regulations that directly impact citizens« lives and livelihoods. Today, we have reached the stage of »real estate equilibrium,« which has charted sustainable paths for the future and corrected the distortions that long plagued the landscape; haphazard development has disappeared, and with it, speculative bubbles and the sale of illusions have faded. The last quarter of the past year provided tangible evidence of this maturity, with the release of residential land at prices approaching »1,500 riyals" per square meter, along with the release of vast tracts of undeveloped land for development, which brought prices back to fair, corrective levels.
This significant shift has prompted us in this issue to tackle a thorny yet vital topic: »How are residential projects priced?" The answer to this question does not depend solely on the cost of producing real estate units—which consists of land value, construction costs, and a profit margin— but the matter is much broader and deeper; a fair property valuation is subject to a number of factors, including the building’s lifespan and operational life, its expected value after »10 years," for example, and the area’s investment potential. Therefore, the strategic location and proximity to major transportation hubs Major projects serve as a pillar that balances the supply-and-demand equation, where competition is fierce and property values are enhanced by the availability of services, schools, healthcare facilities, and markets. The financial solvency of buyers also plays a decisive role in shaping fair and sustainable pricing policies to ensure the attractiveness of real estate products.
In conclusion, we appreciate the technical role played by the relevant authorities in establishing an »approved valuation benchmark” to regulate final prices; by certified appraisers before the product is launched on the market or traded, which safeguards the rights of all parties, strengthens confidence in real estate projects, and ensures sustainable growth.
