JEDDAH: Even as the Saudi real estate sector is keenly awaiting the implementation of mortgage law, real estate brokerage firms have started coming in offering services that buyers and sellers are familiar with in the Western world. One of the latest such companies is Dubai-based Better Homes, which opened its first Saudi office in Jeddah on Tuesday night.
Business brokers, also called business transfer agents, or intermediaries, assist buyers and sellers of real estate or privately held small business in the buying and selling process. They typically estimate the value of the property, advertise it for sale or rent with or without disclosing its identity, handle the initial potential buyer interviews, discussions, and negotiations with prospective buyers, and facilitate the progress of the due diligence investigation and generally assist with the transaction.
In the context of the increasing demand for properties across the Kingdom by both individuals and developing companies, brokerage services have assumed importance, more so when land and property prices are continuously increasing in Makkah, Madinah, Riyadh and Jeddah, and there is an increasing need for loan financing facilities.
“With millions of pilgrims visiting the Kingdom every year, there is an insatiable demand for land and properties in the holy cities of Makkah and Madinah,” Haitham Al-Kariemi, managing director of Better Homes, said.
The company, with its head office in Dubai, has already established several franchise offices in Kuwait, Jordan, Oman and India, and is in the process of expanding its operations in these and other countries. “The Saudi real estate market is a large one and remains least affected by the world economic downturn. Therefore, it requires the availability of specialized services in property management including financing facilities,” he added.
“With brokerage companies offering their services, the Kingdom’s real estate landscape will change in a year’s time,” Ryan Mahoney, managing director of Better Homes, said. He added that the Kingdom offers the most lucrative market for brokerage firms because of the ongoing boom in real estate resulting in increased demand, both ownership and rental.
