Financing options improve investment in the Saudi real estate sector, say experts at the Riyadh Forum
RIYADH: The second Real Estate Future Forum concluded in Riyadh on Wednesday after the participation of 30 states and 100 public and private sector speakers, along with leading economic experts, investors and decision-makers from both local and global.
During the three-day event, Saudi housing specialists underlined the need to invest in the sector through various financing alternatives, based on clients’ capabilities and requirements.
Municipal Affairs, Rural Affairs and Housing Minister Majid Al-Hogail said in-kind registration was one of the main priorities of the real estate sector’s comprehensive strategy, adding: “It is directly linked to the reliability and investment attractiveness of the real estate sector. ”
He noted that 2022 had witnessed radical developments and major transformations “as well as the launch of a single entity responsible for real estate registration, the General Real Estate Authority, in addition to the promulgation of the Real Estate Registration Law and the associated implementing rules. ”
The forum covered various topics such as the role of the emirates, governorates, ministries and secretariats in aligning to strengthen the real estate sector, and regional efforts and their impact on the growth of the sector.
The forum also focused on the future of real estate investment and regulation.
Mansour bin Madi, CEO of the Real Estate Development Fund, said the individual real estate finance market grew significantly, reaching SR 674 billion ($179.5 billion) between January and November 2022, an increase of almost 130 percent from SR 287 billion in 2022. 2017.
This reflected the success of the Housing Plan, one of the Kingdom’s Vision 2030 programs.
Bin Madi added that the Real Estate Development Fund’s initiatives are supported by digital governance of the “best global standards”, citing the execution of more than 10 million digital operations through 43 e-services, as well as the programs and services of the fund with more than 103 e-services. -Services.
He noted that the role of the private sector in providing financing and land support to citizens had become more effective, citing the sustainability of the financial market and support programs as a Result of the signing of more than 150 strategic agreements with the private sector, that contributed to providing solutions.
Noffel Al-Salama, CEO of the housing program, explained that the scheme had several issues and “needed a major overhaul of the system, whether it was offering real estate or essentially financial alternatives.”
According to Al-Salama, the housing sector accounts for more than 60 percent of the real estate sector and there is a need for development in terms of developer empowerment, reorganization and legislation to deliver the housing units demanded by citizens.
Al-Salama indicated that the program nevertheless provides housing solutions that meet the needs and aspirations of Saudi families and that “one of the most important of them is to facilitate the acquisition procedures with an immediate right to direct access to financing through the relevant regulations to ensure the achieve desired targets and achieve growth in the area of control of legislation and government guidelines.”
Hussein Al-Harbi, CEO of the Entrustment and Liquidation Center, said the body is responsible for encouraging cooperation between the government and judicial authorities, as well as strengthening and supporting the private sector involved in judicial and governmental liquidation operations.