A new administrative body will be established in Saudi Arabia to look after the real estate sector. This was announced Sunday at the Saudi Arabia International Real Estate Conference (SAIREC) held by the National Real Estate Committee of Saudi Arabia in association with Al-Iktissad Wal-Aamal Group.
This meeting was the third SAIREC conference. It is an annual meet that discusses and analyzes the strengths, weaknesses and opportunities in the Saudi Arabian real estate market. The meeting is a two-day conference.
On the first day of the conference, the discussion was all about the outlook and the performance of the property sector in the past year. Long term trends, opportunities, the impact of the sector on the economy of the country were also analyzed. Since the property market is a major contributor to the Gross domestic product (GDP) of Saudi, the meeting focused on augmenting and highlighting the sector and its operations.
The new regulatory authority will oversee policies of investments and its allocation, operation and utilization.
"The aim of the authority will be to oversee the overall policy and regulation for running and investment in the sector that has the potential of creating multitrillion worth activities in the economy, as the most active sector after the oil sector," a source said to the Saudi Gazette.
This authority will prove beneficial in not supervising investments but to also in maintaining a code of conduct and sincerity among the realtors. Recently, reports of unauthorized brokers operating in the market, which are leading to abnormal price fluctuations, had surfaced.
The authority might help regulate the unlawful practices as well. The meeting will continue to discuss more real estate issues on Monday May 20.
While the residential housing property in Saudi Arabia remains considerably sturdy, the commercial real estate market is a little weak. According to a recent quarter study by Fast market research, it was forecast that the commercial sector will only have limited growth. Nevertheless, the total outlook remains broadly positive.
Read the report by Fast market Research, here.