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Abdullah Al-Hammad, CEO of the Real Estate General Authority (REGA)
Real estate prices in Saudi Arabia reached a high level, and the state is not satisfied with it, especially amid the existence of a gap between supply and demand, which reflects negatively on the sector, Rotana Khalejia reported, citing Abdullah Al-Hammad, CEO of the Real Estate General Authority (REGA).
The state seeks to lower real estate prices through boosting demand and striking economic balance in the sector, Al-Hammad said. He added that the government aims to inject units at affordable prices and support supply by offering government lands and forming partnerships with the private sector, especially in Riyadh that is witnessing a remarkable rise in prices.
A new law allowing foreign ownership is in its final stages and will be issued soon, the CEO said, noting that it will be more comprehensive than the current applicable law.
Foreigners will be allowed to own all kinds of real estate, namely the commercial, residential, and agricultural as per some controls.
Al-Hammad said the real estate analysis in the market lacks accurate information; hence REGA is working to issue regulations on real estate consulting and analysis as applied by the Capital Market Authority.
The real estate sector dominates nearly 5.1% of the Kingdom's GDP and 12.8% of the non-oil GDP, Al-Hammad said, adding that the number of housing units in Riyadh reached around 1.4 million.
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