https://arab.news/jb3az
RIYADH: New regulations providing safeguards in Saudi Arabia’s real estate sector helped drive up residential and commercial property transactions by 17 percent within their first year, according to a senior official.
Speaking at the launch of the Real Estate Brokerage Forum, CEO of the Kingdom’s Real Estate General Authority Abdullah bin Saud Al-Hammad highlighted the positive outcomes in the sector since the law was enacted on June 29, 2022, which helped deliver SR605 billion ($161.2 billion) worth of deals within 12 months.
The new regulations mean the Real Estate General Authority is responsible for preparing mandatory contract forms, promoting brokerage and services, and defining marketing criteria as well as setting standards, and managing violations and complaints.
This law applies universally to individuals, partnerships, and corporate entities involved in estate brokerage activities.
The regulation is part of a drive to increase home ownership in Saudi Arabia, with the Kingdom aiming for a 70 percent rate by 2030.
Reflecting on the law's success, Al-Hammad added that residential transactions reached approximately 2.9 million, up 18 percent, while commercial transactions increased by 11 percent to 604,000, according to the Saudi Press Agency.
He went on to say that the real estate brokerage and services legislation provided extensive opportunities for innovation and development and played a pivotal role in the economic framework and real estate transactions.
Furthermore, the Real Estate General Authority registered around 219,000 real estate brokerage contracts and issued 35,255 individual brokerage licenses along with 19,735 licenses for corporate entities.
It also licensed 52 real estate platforms, which contributed to removing over half a million unreliable property advertisements, according to the CEO.
The law ensures transparency and boosts the efficiency of real estate brokers through regulatory practices and defined responsibilities.
Al-Hammad said that the authority conducted 58 joint inspection campaigns with relevant entities, inspected over 34,000 public advertisements, and processed more than 67,000 electronic surveys and 9,100 reports, showcasing the rigorous oversight mechanisms in place.
He added that this forum edition is part of ongoing efforts to enhance real estate brokerage services and transactions, building a robust and advanced sector that contributes to economic growth and aligns with strategic aspirations.
The event’s discussions focused on the impact, opportunities, and challenges posed by real estate platforms on the future of the market.