‘Real estate authority needed’

Updated 03 May 2013
0

‘Real estate authority needed’

Experts have called for the creation of a “real estate authority” following in the footsteps of the Capital Market Authority (CMA) to draft legislation, safeguard the rights of landlords and tenants and regulate the relationships between the two parties.
Experts have predicted that the real estate market will witness a decline in prices during the next period in light of the recent rulings on the housing sector by Custodian of the Two Holy Mosques King Abdullah. The Ministry of Municipal and Rural Affairs and other agencies will have to hand over all developed pieces of land to the Ministry of Housing which will, in turn, distribute them to citizens along with construction loans.
However, according to experts, the real estate market lacks pricing policies and suffers from the lack of a monitoring body to streamline the market.
Khalid Al-Abd Al-Karim, a member of real estate at the Eastern Region Chamber of Commerce and Industry (ERCCI), said the topic of rental hikes is a thorny issue, adding that no clear-cut polices or procedures exist for determining or redefining housing prices.
He said the market for apartments and villas is controlled by the landlords (owners) in the absence of specific standards to control the pricing mechanism.
To ease the real estate bottleneck, Khalid Al-Abd Al-Karim suggested a series of solutions, including the provision of financial support to land developers, investors and citizens.
Funds for citizens could be tailored to their monthly salaries to either build the unit or buy ready-made apartments. He said the housing allowance for government employees could be exploited to buy housing units or villas if a monitoring body on landlords is created that will prevent them from raising prices, adding that the demand for real estate units, be they apartments, villas or duplexes, has recently witnessed a downward trend because of the insufficiency of liquidity for potential buyers.
Omer Al-Asis, another expert, called for the introduction of a unified policy to determine the prices of real estate units kingdom-wide based on specific criteria including, among others, location of quarters, lifespan of a building and the availability of services such as car parking and other services. He called for strict control on annual rent increases instead of the current random rates dominating the market.
For his part, Mubarak Al-Murri, an investor, stressed the fact that house rents are subject to the supply and demand mechanism like any other commodity. He cited a series of reasons for increases in rent prices, including the absence of legislation governing relations between landlords and tenants which, he said, has led to disputes between the two parties.


Two Holy Mosques program receives international award

The Two Holy Mosques program has received the Sharjah International Cultural Heritage award for its achievements. (SPA)
Updated 22 May 2018
0

Two Holy Mosques program receives international award

  • The state adopted the program presented by the SCTH four years ago
  • King Salman’s initiative to care for cultural heritage is one of the outputs presented by the SCTH

RIYADH: The Two Holy Mosques program to care for the Kingdom’s cultural heritage has received the Sharjah International Cultural Heritage award for its achievements.
It was described as an unprecedented national program sponsoring projects and efforts related to all aspects of national heritage.
King Salman’s initiative to care for cultural heritage is one of the outputs presented by the SCTH, sponsored and financed by the country, and it is being carried out as part of the important initiatives of Saudi Vision 2030 with more than SR5 billion ($1.3 billion) allocated in the current phase. The initiative includes 10 courses, each under implementation consisting of a number of main projects that amount to more than 330 in total.
The state adopted the program presented by the SCTH four years ago and financed within the National Transformation Program with more than SR4 billion ($1 billion).
The program includes the establishment of 18 museums in the Kingdom, 80 heritage sites and opening them to visitors, the restoration of 18 villages and traditional towns to visitors.