Real estate expert: 3 trillion Saudi Riyals is the size of the real estate market in the Kingdom that is expected to increase

A local real estate expert said that the size of the real estate market in the Kingdom is to 3 trillion riyals and is likely to increase.

This was positively affected by a number of regulatory measures that have taken place in the market since 2011, most notably the launch of the Saudi Authority for Accredited Valuers.

On Monday 8, April 2019, Asharqia Chamber, represented by the Real Estate Development Committee, organized a workshop in the presence of the Chairman of the Committee Engineer Hamid Bin Hamri.

During the workshop, Mohammed Al-Barr, a member of the Saudi Authority for Accredited Valuers and the Managing Director of Khadamati Valuation Co, said that according to the general extrapolation of the volume of real estate in the Kingdom, its market value is expected to be in the range of approximately 3 trillion riyals.

the number is likely to increase over the next five years, bearing in mind that the number of real estate units by type and classification is not yet known due to the lack of real estate registration.

Some assets may be transformed from one form to another, such as turning the land into an apartment building, a commercial building or any other use, and therefore the value of the original is added to the land.

Al-Barr expected that the size of real estate finance will reach about 270 billion riyals.

There are about 7000 real estate companies in the market, including 250 real estate appraisal licenses, while the value of real estate assets worth hundreds of billions of riyals.

Al-Barr said that the Saudi real estate market was affected by several procedures and official decisions issued after 2011, including the establishment of the Ministry of Housing, the establishment of the Saudi Authority for Accredited Valuers, the Council for Economic and Development Affairs (on the implementation of the Vision of the Kingdom 2030), the launch of the Real Estate General Authority, and transferring the interest of state property to the General Authority for State Property under the umbrella of the Ministry of Finance.

He pointed out that the profession of real estate valuation has taken place in the domestic market and growing revenues of companies engaged in the evaluation activity, which has become a stand-alone activity.

The total value of the real estate valuation market over the next five years is estimated at more than SR 2.9 billion.

He pointed out that the annual market size is currently SR 495 million, of which 70% is the share of major companies.

Al-Barr said that the real estate valuation market includes several government agencies licensed to manage the assets of the state, and there are more than 4000 multi-level real estate developers in the market.

He explained that the data were taken from official sources such as the Ministry of Finance, the Real Estate Development Fund and the Saudi Authority for Accredited Valuers, the Ministry of Justice and the Ministry of Commerce and Investment.

During the workshop, Al-Barr reviewed several key points related to the real estate valuation market, which has become one of the most prominent professions in the market in the light of recent developments.

Source: Republic of Cyprus, Ministry of Foreign Affairs