Best Choice: Expanding the scope of real estate funds seen as essential factor in achieving equilibrium between supply and demand
A recent report released by Best Choice Real Estate Development states that establishing more Real Estate Funds in Saudi Arabia will help in serving the expected 5.8% year-on-year growth in its real estate sector, thereby providing more than one million residential units over the next five years.
The report further stressed on the need to expand the scope of these funds as a secure investment tool to boost investor confidence and address the growing demand for residential units, while redressing the insufficiency of affordable housing for low- and middle-income families in the Kingdom where the growing population currently stands at around 30 million.
The Real Estate Funds provide the necessary liquidity and financial support for real estate developers to implement high-value projects which, in turn, will contribute in achieving equilibrium between demand and supply in the Saudi real estate market. The company’s report views these trusts as vital for promoting real estate financing in the Kingdom, which is expected to exceed SAR 50 billion by the end of 2014 Q2.
Mohamad Rabih Itani, CEO, Best Choice, said: “We call for diversification in the distribution of Real Estate Funds to reach not only Riyadh and Jeddah, but all other regions of the Kingdom as well.”
He added that the Real Estate Funds offer secure investment with better returns compared to other investment tools, especially in light of the increasing real estate activity as the property wealth across Saudi market is likely to reach over USD 1 trillion by end of 2014.
Itani further indicated that the presence of a well-defined mechanism for managing real estate trusts based on set standards and regulations is a reassuring investment factor that protects the interest of developer and all other parties involved in the trust.
“Real Estate Funds are a good investment alternative for those looking for lucrative return-on-investments. This requires intensifying efforts aimed at expanding the scope of these trusts with main focus on improving efficiencies and necessary expertise to ensure their proper management. This involves launching large-scale promotion programs among socio-economic communities to raise awareness on the role of the Real Estate Funds at all levels,” Itani concluded.
Established in Riyadh, Best Choice Real Estate Development is emerging as a property solution provider of choice offering highest international standards of quality via its strategic mix of high-end developments, market research.
For further information, please contact:
Orient Planet PR & Marketing Communications
P.O. Box: 500266
Dubai, United Arab Emirates
Tel: 00971 4 4562888
Fax: 00971 4 4549528