A one-month domestic survey regarding a new off-plan real estate law aimed at safeguarding dealers and preventing malpractices has been launched in Saudi Arabia.
Before the reform is implemented, the Real Estate General Authority (REGA) is polling both the public and private sectors on its “Istitlaa” website to gather their opinions.
According to REGA, the survey, which runs from March 9 to April 8, is designed to collect feedback and insights on the new regulations before they are enacted.
“This poll will allow the public, as well as government agencies and the private sector, to express their views and observations before its approval,” REGA said.
The report noted that the “draft guide” for off-plan property sales consists of 55 “procedural” documents intended to regulate off-plan property sales and leasing activities, while also increasing transparency and disclosure in a way that protects the rights of all parties involved in the contractual arrangement.
“It will also help improve governance and compliance and streamline the completion of all procedures for issuing relevant licenses,” it added.
The new rules, according to the Authority, outline the real estate development “journey” for off-plan projects, covering areas such as developer qualification and registration, dealing mechanisms and regulations, and project delivery-related measures.
The survey is being conducted as the Kingdom embarks on a massive building boom as part of its historic economic transformation plan, known as “Vision 2030,” which aims to increase the percentage of Saudis who own homes to at least 70% by 2030.
REGA reported last year that over 300,000 new housing units are set to be built between 2022 and 2025, emphasising that the Kingdom’s real estate market is the second-largest contributor to GDP after the oil industry.
According to REGA, it is expected that the market will grow to nearly SAR 353 billion (USD 94 billion) in 2023, up from an estimated SAR 241 billion (USD 64.3 billion) in 2022.