JEDDAH, 24 December 2004 — In order to develop the real estate market in Saudi Arabia, new approaches toward planning, marketing and selling must first be implemented. This was the message at the workshop held yesterday in the morning part of the Saudi real estate development and investment conference.
The workshop was designated for businesswomen only but out of 200 invitations sent only around 30 women attended including from the press. The presenters were all women but their presentations would have benefited both men and women.
Wafa Al-Ghamdi gave the first workshop titled “New methods for marketing and developing real estate”.
As a consultant in real estate marketing and based on her experience in real estate in the US, she compares the professional approach toward real estate in the US and the Saudi chaotic way of developing and marketing real estate.
A professional approach relies on market studies, market analysis and meeting customer demands. “The Saudi real estate market still depends on the old methods and does not meet customer demands especially middle and lower class families,” 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.
She compared a typical process for buying or selling a property in the US through a real estate agent and the process followed here which is ineffective, frustrating and unprofessional. “There is lack of market awareness on the part of the customer particularly women, and agents take advantage of the women’s lack of knowledge,” she said.
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 most real estate agents are women.
Things are improving for Saudi women investing in real estate because now they are allowed to buy and sell without a wakeel (legal agent) and many real estate agencies are now employing women.
There are a few Saudi real estate agents now who are following the more professional approach and this is contributing to the development of the market.
She encouraged women to invest in real estate because it is safer, but they have to do their homework and study the market. “53% of foreign investment in Saudi Arabia is in real estate. This is important information. It tells you how strong the market is,” she added.
The next speakers, Dr. Hannah Alasam and Nuha Hussein from UK Property investment, one of the sponsors of the conference, gave an overview about the company and spoke about one of its fields, healthcare opportunities and investments.
They were interested in attracting Saudi businesswomen to invest not only in residential properties in the UK but also in their healthcare projects. “It is a secure investment, profitable, hassle-free and there is a market demand for it,” said Nuha Hussein, investment director at UK Property Management.
The final speaker was Suzan Murshid from the College for Business Administration and she spoke about the role of academic institutes in regulating real estate development in Saudi Arabia.
One of the problems of real estate investment in the Kingdom is the lack of institutes specialized in the field.
Murshid recommends teaching real estate as part of business administration curriculum and law.
What is needed is trained, specialized and licensed real estate agents so that investors can be assured they are dealing with a professional, she said.
There are a few Saudi agencies that already began offering training and certification in real estate management.
