The real estate sector in Jeddah is set to launch a new system of implementing an auction system in its dealings. Saudi businessmen involved in real estate market met in Jeddah recently to draw up a strategy and mechanism for the implementation of the new system.

Jeddah Gov. Prince Mashal bin Majed has given his nod to the new system which will start in Jeddah and expand to the other parts of the Kingdom at a later stage.

The businessmen hailed the Kingdom’s efforts to boost the real estate sector and to curb illegal activities in the market.

The new regulatory mechanism ensures that the property is free from dispute, encroachment, and possess a clear title deed.

It also emphasizes that expatriate tenants have valid residence permits.

The business community chose Khalid bin Abdulaziz Al-Ghamdi to evolve the system by consulting the stake holders.

Khalid bin Saeed Pashoaar, vice president of the real estate committee at the Jeddah Chamber of Commerce and Industry (JCCI), said the property market in the Kingdom offers one of the most lucrative investment opportunities in the region.

He said, “There are more than 285 real estate projects worth $260 billion being implemented in the Kingdom currently.”

He said, “The construction market and real estate remains the largest domestic demand in the Gulf region. The Kingdom needs to build about 3 million housing units which translate into 250-300 thousand housing units per year. Demand for more units is expected to rise until the year 2040.”

Awad bin Abdul Kader Aldose, vice-president of the commission on appraisal and real estate auctions, said that the real estate market in the country, which has seen a quantum leap since its inception in 1970, is expected to grow over the next few years.

He attributed this to the increased government spending on infrastructure and vital sectors’ developments, which will make for a more vibrant real estate market. Aldose said that the new system is a milestone for the real estate sector.

Sati Saleh Al-Mutairi, a prominent real estate businessman, hailed the new mechanism saying that it will help create jobs for Saudi youth in the sector.

“The new mechanism should be introduced in other parts of the Kingdom too,” he added.