Amlak-Diyadh
\nQ1: How do you see the real estate situation in Riyadh now?
\nC: The real estate situation is currently in a stage of anticipation, although the demand for residential real estate in the Kingdom, especially in major cities such as Riyadh, is steadily increasing, as the supply of housing units does not meet the increasing demand, which has resulted in a significant increase in the value of rents and sales, due to several factors, the most important of which is the increase in local migration to the capital in search of job opportunities. The city of Riyadh represents about 24% of the Kingdom's population, with a population of more than five million people currently and expected to reach seven million in 2024 (Riyadh City Development Authority study). As the need for residential land increases, so will the demand for land for facilities, services and commercial complexes, which shows that the real estate reality in Riyadh is heading towards an increase in demand that needs to be planned before it turns into a crisis. It is very important that real estate investment is encouraged to participate in building real estate products that serve the final beneficiary and not land speculation. <\/p>\n
Q2\/ In your estimation as a real estate man, to what extent has the global financial crisis cast a shadow on the real estate market in the Kingdom, especially in Riyadh?
\nC: There was a kind of caution and anticipation, and there is no doubt that the global crisis led to the detention of liquidity in banks, which affected the movement of buying and selling in all fields at that time, but the nature of the Kingdom and the great growth movement it is going through overshadowed this caution and anticipation, so the impact was positive by shifting Saudi investments to the local market where local demand and the urban movement continued as it was and more, and investors went to the safe container that proved over the years its strength, durability and resistance to financial shocks and tremors, namely. <\/p>\n
Q3: Do you think that real estate is experiencing a real recession, or is it starting to shake off its effects, and that we could be on the cusp of a new launch phase towards real estate prosperity? What are your expectations?
\nA: I can confirm from our daily practice and experience in this field that there is no recession at the present time, on the contrary, there is prosperity and tangible real estate activity throughout the Kingdom, but the demand for real estate varies from one region to another depending on the location in relation to the city only, and in light of the largest budget in the Kingdom, there are many projects awaiting implementation, which will increase the demand for real estate. In addition to this, the imminent issuance of the package of real estate financing regulations, which is expected to increase the purchasing power of the citizen and increase the confidence of investors in the market as a result of the regulation resulting from the issuance of these regulations, thus increasing work and production, increasing the number of real estate financing companies and entering new investors in the real estate market, which contributes to the launch of a new phase towards real estate prosperity. <\/p>\n
Q4: Some observe that projects are stalled and investors are reluctant to continue
\nDo you think this is due to the repercussions of the global financial crisis on local investors, making them reluctant to pump their money into these projects in light of the recession? Or is there a real liquidity crisis among investors that makes them unable to complete their projects? How do you see the truth?
\nC: I don't think there is a liquidity crisis at the moment, as most of the projects were contracted after the global financial crisis, which shows that the financial crisis did not affect these investors, but in the past period there was a great rush to implement projects, and what some projects are witnessing now from the slowdown in implementation may be due to the reluctance of some investors or issues of some contractors affected by the high cost of building materials.<\/p>\n
Q5 \/ Where do commercial banks stand in this \u201ccrisis\u201d situation? Do you think they are currently ready to enter strongly to finance real estate projects, especially since they have huge liquidity looking for channels to employ and invest it? Or do you think that banks are waiting for the issuance of the mortgage system to be encouraged to enter strongly to finance real estate market projects?
\nC: The slowdown of banks in financing real estate projects is very natural as a result of the conservatism resulting from the global crisis. However, this does not mean that banks have stopped completely, but rather they are selecting from the best developers who are able to fulfill their commitment to the banks. As for the issuance of real estate financing regulations, this will of course increase the appetite of banks to enter strongly into the real estate development market, and we as real estate professionals have called and are still calling for the importance of the speedy issuance of real estate financing regulations to encourage banks to enter into financing real estate housing development projects, which contributes to solving the suffocating housing issue that suffers from the cities of the Kingdom, especially the capital Riyadh.<\/p>\n
Q5: Any last words?
\nI say that the real estate market lacks regulation and protection of all parties working in it and the protection of the final beneficiary, who is the most important party in the whole matter, as it is required to activate the regulations related to the real estate sector and the rapid issuance of real estate financing regulations, the most important of which is the implementation system. This is to popularize and support investment in this important sector that touches the most basic demands of the human being, which is housing. The construction movement in an organized legislative environment supports the generation of job opportunities for citizens and creates a good investment environment that attracts global and local investments.<\/p>","protected":false},"excerpt":{"rendered":"
Reading time: <\/span> 3<\/span> Minutes<\/span><\/span>\u0627\u0645\u0644\u0627\u0643 -\u0627\u0644\u062f\u064a\u0627\u0636 \u06331\/ \u0643\u064a\u0641 \u062a\u0631\u0648\u0646 \u0627\u0644\u0648\u0627\u0642\u0639 \u0627\u0644\u0639\u0642\u0627\u0631\u064a \u0641\u064a \u0627\u0644\u0631\u064a\u0627\u0636 \u0627\u0644\u0622\u0646\u061f \u062c: \u0648\u0627\u0642\u0639 \u0627\u0644\u0639\u0642\u0627\u0631 \u0641\u064a \u0627\u0644\u0648\u0642\u062a \u0627\u0644\u062d\u0627\u0644\u064a \u0641\u064a \u0645\u0631\u062d\u0644\u0629 \u062a\u0631\u0642\u0628 \u0631\u063a\u0645 \u0623\u0646 \u0627\u0644\u0637\u0644\u0628 \u0639\u0644\u0649 \u0627\u0644\u0639\u0642\u0627\u0631\u0627\u062a \u0627\u0644\u0633\u0643\u0646\u064a\u0629 \u0641\u064a \u0627\u0644\u0645\u0645\u0644\u0643\u0629 \u0648\u062e\u0635\u0648\u0635\u0627 \u0641\u064a \u0627\u0644\u0645\u062f\u0646 \u0627\u0644\u0643\u0628\u0631\u0649 \u0643\u0645\u062f\u064a\u0646\u0629 \u0627\u0644\u0631\u064a\u0627\u0636 \u0641\u064a \u0627\u0632\u062f\u064a\u0627\u062f \u0645\u0636\u0637\u0631\u062f\u060c \u0641\u0627\u0644\u0645\u0639\u0631\u0648\u0636 \u0645\u0646 \u0627\u0644\u0648\u062d\u062f\u0627\u062a \u0627\u0644\u0633\u0643\u0646\u064a\u0629 \u0644\u0627 \u064a\u0644\u0628\u064a \u0627\u0644\u0637\u0644\u0628 \u0627\u0644\u0645\u062a\u0632\u0627\u064a\u062f\u060c \u0648\u0647\u0648 \u0645\u0627 \u0646\u062c\u0645 \u0639\u0646\u0647 \u0625\u0632\u062f\u064a\u0627\u062f \u0645\u0644\u0645\u0648\u0633 \u0641\u064a \u0642\u064a\u0645\u0629 \u0627\u0644\u0625\u064a\u062c\u0627\u0631\u0627\u062a \u0648\u0627\u0644\u0628\u064a\u0639\u060c \u0648\u0647\u0630\u0627 … Read more<\/a><\/p>","protected":false},"author":34,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"0","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[100],"tags":[],"class_list":["post-1380","post","type-post","status-publish","format-standard","hentry","category-residential"],"acf":{"amlak_post_excerpt":"","amlak_post_excerpt_source":{"label":"Amlak post excerpt","type":"text","formatted_value":""}},"featured_image_urls":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","trp-custom-language-flag":"","event-thumbnail":"","event-medium":"","event-large":"","event-hero":""},"author_info":{"info":["\u0627\u0645\u0644\u0627\u0643 \u0627\u0644\u0639\u0642\u0627\u0631\u064a\u0629"]},"category_info":"\u0633\u0643\u0646\u064a<\/a>","tag_info":"\u0633\u0643\u0646\u064a","comment_count":"0","_links":{"self":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts\/1380","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/comments?post=1380"}],"version-history":[{"count":0,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/posts\/1380\/revisions"}],"wp:attachment":[{"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/media?parent=1380"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/categories?post=1380"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/amlak.net.sa\/en\/wp-json\/wp\/v2\/tags?post=1380"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}