Dar Ar-Riyadh project to go on sale soon, says Dar Al-Arkan chairman

Dar Al Arkan Real Estate Development Co. will start the sales of Phase 4 of Shams Ar-Riyadh project, ahead of the holy month of Ramadan, Dar Al-Arkan's Chairman Yousef Al-Shelash told Argaam.

The Saudi-listed real estate developer is looking to secure approvals from the Saudi housing ministry to start off-plan sales for the project, he added.

Shams Ar-Riyadh project comprises five phases. Phase 4 is set to be the largest of the project. Sales on three phases of the project (1, 3 and 4) are pending regulatory approvals, while Phase 2 is a staff residence built specifically for SABIC's staff.

Dar Al-Arkan is developing another 8-million sqm project in the Eastern Region, sales of which are expected to start by end of 2018 or early 2019, Al-Shelash said.

Besides, the company's Shams Al-Arous project, based in Jeddah, is expected to be finalized within two months, and sales may start by next summer.

“The company bought a number of land plots in Morocco and Eastern Europe, and plans to launch projects in the second half of 2018”, Al-Shelash said.

Dar Al-Arkan reported a net profit of SAR 331.12 million in the first quarter of 2018, versus SAR 12.23 million in the same period of 2017, on higher property sales.

Al-Shelash attributed the solid results to a policy shift that included a divestiture from several investments.

The Saudi real estate market has come under pressure since mid-2014 as lower oil prices impacted individual purchasing power and business investment appetite.

Al-Shelash said that his company's robust sales have offset the market's downside although "Sales margins have dropped from some 45 percent to 18 percent in the past few years."