The recent passage of real estate finance regulations by the Saudi Arabian Monetary Agency seeks to ease the pent-up demand within Saudi Arabia’s residential sector.
Supported by a favorable first-time home buyer demographic, the residential finance sector is set to capitalize on the strong fundamentals within the residential real estate sector and public sector initiatives.
With projections to the tune of 200,000 residential units required annually over the next decade, professional service providers will be required to bridge the gap between financial institutions and real estate developers by streamlining the transaction process for the customers.
“The Saudi residential real estate sector is among the vital sectors currently experiencing a promising upward swing,” said Dhafer Al-Kalali, general manager of Gulf Prime Services (GPS), an integrated real estate services platform catering to the residential market,
He said the mortgage reforms would bring about a paradigm shift across the real estate sector, and migrate the entire business practice from an immature to a core industry.
He added: “The demand for housing is set to rise on an annual basis. The Saudi government has given top priority to the housing issue. It has incorporated housing in its successive development plans.”
The investment climate in the Saudi real estate market is both robust and attractive, powered by the standing of the Kingdom as a safe market, thanks to its vigorous national economy and the huge gap between supply and demand.
The Saudi real estate market is therefore poised to offer a perfect opportunity and safe haven for investors.
Kalali added: ‘“The integrated real estate services and home-financing solutions offered by GPS are in accordance with current and future market demands.”
Kalali said: “GPS will focus on providing solutions for the purpose of financing villas, flats, land plots, and commercial units.”
He said GPS had also partnered with several residential real estate developers to provide consumers with best suited real estate inventory. The company started its business operations in 2012 with the opening of its head office in Riyadh.
GPS has strategic plans to expand in the Eastern and Western Regions of Saudi Arabia by the end of 2013, said Kalali.