JEDDAH, 6 March 2006 — Despite the relative boom in construction, the real estate investment market is still stagnant. Women investors were particularly reluctant to enter the market and instead preferred the stock market with all its risks. The problem for women was lack of access to information about the real estate market, lack of control and lack of awareness. However, more and more women are now reconsidering that and finding it safer to invest in real estate rather than the stock market, especially with recent crashes in the stock market. “At least I know that my capital is secure and that even if I don’t make money on the property, I’m not going to lose it,” said Fatima.
On the other hand, those investing in real estate must be patient and realize that it is a long-term investment, which is why many are flocking to the stock market. “For the past year, the number of women investing in real estate has been decreasing; they are all putting their money in the stock market,” said Samah Abu Anza, head of the women’s section at Hamad Bin Saedan and Partners Real Estate Company. Nevertheless, clearly real estate companies have realized that women are potential customers with the huge capital resources they have and so they have opened women’s sections.
Although most of these women sections have proven successful in explaining and convincing women investors to purchase or sell a property, the women investors still rely on their male relatives to make the decisions and manage the property. “Women in general lack awareness and information and they are afraid to make decisions even after we provide them with all the information they need. Most of the time she is under pressure and influenced by her male relative, whether the husband or the brother, and it is he who makes the final decision, even though with the new regulations she does not need a legally designated agent (wakeel) and she has her own ID card for her business,” said Abu Anza to Arab News. What is preventing the women investor from taking control and having confidence are the cultural traditions of believing that this is a man’s world and the general attitude of dependence by some women, even when the money being invested is hers, according to Abu Anza. The big real estate companies provide a complete service of property marketing, management and customer service lifting the burden off the women in these areas, which she might be worried about having to mix with men and be in the field. Most women, when investing in real estate, prefer to buy an apartment building and rent it out or purchase a home for their personal use, according to Abu Anza; they do not venture much into big development projects.
At a seminar on real estate last year, Wafa Al-Ghamdi, a real estate consultant, said that one of the problems in attracting investors is the non-professional approach followed in marketing and developing property. She criticized the lack of market studies on real estate, market analysis and meeting customers’ demands. “The Saudi real estate market still depends on old methods and does not meet customer demands, especially middle and lower class ones,” said Al-Ghamdi. With the population increase, the new tourism strategy and new international investment laws there is great potential in the Saudi real estate market but it needs to be organized. Among the problems the Saudi real estate market faces, according to Al-Ghamdi, is the domination of a few investors, lack of studies, lack of laws protecting the investors and customers, lack of transparency in dealings, lack of coordination between the various government departments concerned and the reliance on rumors to promote properties. Recently, and especially after some real estate scams, the Ministry of Commerce and Industry introduced new regulations that attempt to protect the rights of the real estate developer and the customer and many investors have seen that as a positive step that would help reinvigorate the real estate market from its slump.
Women play an important role in real estate abroad because it is the women in the family who make the decision on what is needed; therefore many real estate agents are women. Saudi Arabia is still far away from that because buying property is considered a man’s prerogative and he is more knowledgeable and experienced. However, things are improving for Saudi women investing in real estate because now they are allowed to buy and sell without a legally designated agent and many real estate agencies are now employing women. Al-Ghamdi encouraged women to invest in real estate because it is safer, but they have to do their homework and study the market. “53 percent of foreign investment in Saudi Arabia is in real estate. This is important information. It tells you how strong the market is,” she said.