RIYADH – The recent passage of the Real Estate Finance Law by the Saudi Arabian Monetary Agency seeks to ease the demand in the residential sector in the Kingdom. 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 amongst the vital sectors currently experiencing a promising upward swing in the demand for residential units as the majority of population comprises of youth," Dhafer Al-Kalali, General Manager of Gulf Prime Services, an integrated real estate services platform catering to the residential market. This indicates the high rate of setting up new families, and underlines the soaring demand for affordable housing, he said, adding that the demand for housing in general will not abate or recede rather it is set to rise on an annual basis. Al-Kalali said that the Saudi government has given top priority to the housing issue and incorporated housing in its successive development plans, and ranked the provision of healthy, socially and economically feasible houses atop of its objectives. The mortgage market would bring about a paradigm shift across the real estate sector, and migrate the entire business practice from an immature to a core industry. 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 & demand. The Saudi real estate market is therefore poised to offer a perfect opportunity and safe haven for capital and investment seeking growth potential. “The integrated real estate services and home-financing solutions offered by GPS are in accordance with current and future market demands. GPS will focus on providing solutions for the purpose of financing villas, flats, land plots, and commercial units. GPS has also partnered with several residential real estate developers to provide consumers with best suited real estate inventory. The Company commenced 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 Al-Kalali. – SG
