Saudi Real Estate Sector Booms with New Regulations
In a groundbreaking development, residential and commercial property transactions in Saudi Arabia witnessed a remarkable 17 percent increase within the first year of implementing new regulations that provide safeguards in the real estate sector.
Positive Outcomes Highlighted by Senior Official
During the launch of the Real Estate Brokerage Forum, CEO of the Real Estate General Authority in the Kingdom, Abdullah bin Saud Al-Hammad, emphasized the significant impact of the regulations enacted on June 29, 2022. These regulations led to a staggering SR605 billion ($161.2 billion) worth of deals within just 12 months.
Key Aspects of the New Regulations
Under the new regulations, the Real Estate General Authority is tasked with crucial responsibilities such as preparing mandatory contract forms, promoting brokerage services, defining marketing criteria, setting standards, and managing violations and complaints. These regulations apply universally to individuals, partnerships, and corporate entities involved in estate brokerage activities.
Driving Home Ownership in Saudi Arabia
The regulations are part of a larger initiative to increase home ownership in Saudi Arabia, with the Kingdom targeting a 70 percent rate by 2030. The success of the law is evident in the surge of residential transactions by 18 percent to around 2.9 million and commercial transactions by 11 percent to 604,000, as reported by the Saudi Press Agency.
Enhancing Transparency and Efficiency
The real estate brokerage and services legislation have opened up extensive opportunities for innovation and development while playing a crucial role in the economic framework and real estate transactions. With around 219,000 real estate brokerage contracts registered, the authority issued 35,255 individual brokerage licenses and 19,735 licenses for corporate entities.
Rigorous Oversight Mechanisms
The law ensures transparency and boosts the efficiency of real estate brokers through regulatory practices and defined responsibilities. The Real Estate General Authority conducted 58 joint inspection campaigns, inspected over 34,000 public advertisements, and processed more than 67,000 electronic surveys and 9,100 reports, showcasing the strict oversight measures in place.
Future Outlook
The Real Estate Brokerage Forum aims to enhance real estate brokerage services and transactions, building a robust sector that contributes to economic growth and aligns with strategic aspirations. Discussions at the event focused on the impact, opportunities, and challenges posed by real estate platforms on the future of the market.