Property brokers gained some SR8.9 billion from commissions generated from real estate transactions during last year (1434H), local media said.

The volume of property transactions, exclusively selling and buying operations, in 15 cities Kingdomwide reached SR356 billion during the year, Al-Jazirah daily said quoting dealers.

Real estate brokers in Riyadh gained the highest revenuers at SR2.48 billion, followed by Jeddah at SR2.26 billion and, thirdly, Makkah where brokers realized SR1.54 billion, the paper said.

Real estate investors predicted that the real estate investment funds would grow by 40 percent next year with the recent announcement allowing the funds to sell property units on maps. Unofficial estimates put the investments to be pumped into new funds at SR40-45 billion, notably on the back of Saudi market’s needs of one million housing units in a five-year period, the daily said.

According to the experts, financing of housing projects remains a big problem in the Kingdom, especially in major cities, in light of price hikes of lands, constructions costs and shortage of labor.

Meanwhile, property expert Ali Al-Fawzan said allowing funds to engage in property unit sales on maps would encourage the expansion of real estate investment funds and increase their proceeds to more than 40 percent.

He said the introduction of more funds next year comes to reflect the need of Saudi market to housing unites, which are estimated at 1.3 million during the next ten years.

An expert on real estate fund management said six variable funds (housing and commercial) will come into being in the new year (2014), particularly in major cities such as Riyadh, Taif, Alkhobar and Jeddah.

Allowing sales of property units on maps will revolutionize the real estate industry in the Kingdom in terms of providing different types of property, whether in housing or commercial areas, and attracting foreign investments, Ibrahim Al-Alwan was quoted as saying.