Many people take the initiative to provide insight, analysis – and perhaps sometimes solutions to the housing dilemma in the Kingdom, comparing the number of solutions proposed by the government in a number of laws, regulations and the projects offered by the Ministry of Housing. And between proponents and opponents to any of these laws or solutions, the problem remains, leaving room for more opinions and analysis.
This coincides with the psychological impact on the dealers with this market, while optimists release statements as «Real Estate gets sick but don’t die», and pessimists expect that the market is on the verge of «snowball» and may be difficult to stop it as no one knows its direction, and others believe that «the real estate bubble» began to take shape as the one that hit the neighboring countries.
Are there any illness symptoms in the real estate and housing market, specifically in the kingdom? Is the high frequency debate, speculations and statements from here and there can give a realistic and objective indicators to diagnose the reality of the real estate and housing and anticipate their future?
The presence of active and influential factors in the market as the high prices, scarcity of land, the large gap between supply and demand, real estate finance, and the delay of projects carried by the Ministry of Housing, all can be positive or negative indicators depending on the perceiver. But all the parties in the industry have to find innovative and appropriate environment for housing, and to find wise and deep processors so that none will be affected.
“Residential communities” is one of the innovative solutions that offer clients and investors the real opportunity for living and investment in an outstanding manner. Also it combines the privacy, sophistication and luxury which is favored by seekers of housing in major cities. Burj Rafal community is considered unique model; merging majesty, luxury and integration of services with variety of spaces that meet the needs of its inhabitance.
Mr. Majed Al Hogail, Managing Director, Rafal Real Estate Development Co., said “The activity led by real estate development companies in the market is a positive phenomenon, through the creation of products and living style available for numerous categories in the society searching for excellence. And the mortgage programs that will handle part of that problem will be a positive factor, but it is not the only solution.
AL Hogail added, ” Positive Synergy must be reached between The private sector, real estate development companies and institutions and the programs suggested by the governmental sector that aims with the relevant authorities to provide effective long and short-term housing solutions.”
AL Hogail pointed out, “The real estate market in the Kingdom expected to witness during the next five years an increase in real estate activity. Where the 8th Development Plan indicates a growth in the real estate activity at an annual average rate of 5.8%, and an increase in GDP contribution.”
A report issued by the Capital Market Authority for the second half of 2013, shows that the number of real estate funds (public and private offering) operating in the Kingdom reached 85 real estate funds, and their total assets valued at 25.5 billion riyals by the end of 2013, with 6582 subscribers.”
All Public real estate funds achieved a positive performance during the year, with an average performance 13.6%, where «Riyadh Bank Real Estate Fund – Burj Rafal Tower» was one of the top performers in 2013 valued at 47%.