34 Billion Riyals, the Total Real Estate off-Plan sale for 29 Thousand Units, as Announced by MCI

06 Apr 2016
MCI Real Estate off-plan sale program announced that the total value of the projects under this program reached more than 34 billion riyals since its approval, including projects of more than (13) billion riyals that had been licensed during 2015 AD. This shows an increase of up to 50% compared with the previous years. Meanwhile, this program continues its duties and tasks to follow up and supervise the implementation of 29 thousand real estate off-plan sale units in various regions of the Kingdom.

The annual report issued by the said program revealed that the committee supervising the program held (32) meetings last year, where (106) topics were discussed, and ten new projects had been granted licenses, and thirteen licenses had been renewed for existing projects. Also nine licenses had been granted for foreign projects marketing inside the Kingdom, and fifteen licenses for existing projects.

The program also followed up the workflows, performance, completed phases of projects and discussed the latest developments and reviewed the periodic reports issued by the chartered accountant and the engineering consultant, accredited by the program, for each project, where 60 field visits had been conducted in different parts of the Kingdom.

The program responded to (158) complaints against real estate developers, involved in real estate off-plan sale without obtaining the licenses, and others violating the law of marketing real estate outside the Kingdom, where necessary investigation and legal procedures had been taken, while the program continues to implement inspection rounds on the foreign marketing of the real estate off-plan sale system.

During last year, the program had introduced new methods for real estate off-plan sale, such as the licensing of units whatever the purpose is, licensing lands off-plan sale, licensing marketing of foreign real estate off-plan sale (inside the Kingdom), licensing presenting of foreign real estate off-plan sale (inside the Kingdom`s exhibitions), where these methods are received with great interest by developers and those interested in the real estate affairs.
This program has also concluded several strategic partnerships with backers of the program, such as banks, expo curators, as well as agreements with accounting and engineering bodies for the rehabilitation of accounting firms and engineering consultants to work in the field of real estate off-plan sale.
In an effort to support the real estate newly emerged companies and developers, the program held a workshop on "Supporting Small & Medium Enterprises to Engage in Real Estate Off-Plan Sale Activity".

In addition, this program participated in a number of real estate exhibitions in various regions of the Kingdom, including as well the workshops and events held within the exhibitions` activities, such as "Jeddah International Forum for Urban Development & Real Estate Investment" (Cityscape 2015), "Riyadh Exhibition for Real Estate, Housing and Urban Development" Restatex Riyadh” "Abha Exhibition for Real Estate & Financing Solutions 2015”Eastern Forum & Exhibition for Real Estate, housing and Urban Development" “Eastern Restatex”, "Real Estate &  Construction Exhibition (Qassim Habitat).

It is worth mentioning that real estate off-plan sale projects have achieved a good growth during 2015 AD, since this kind of sale gives more flexibility to buyers in the purchasing and financing process, and helps them to choose and design their units according to their wishes.

Moreover, the real estate off-plan sale, development and purchasing mechanism also contributes in reading the market requirements of the types of real estate units before starting the construction, in addition how far the prices are convenient to the customers. This program allows the customers to own a real estate unit with higher specifications and lower cost, since the real estate developer gets direct financing through the buyers down payments and installments, this would help in reducing the construction cost, and consequently contribute in selling the units at a competitive price.

It is noteworthy that the Royal Decree had been issued, approving the transfer of supervision of real estate off-plan sale, and the related committee formed thereon, from the Ministry of Commerce and Industry to the Ministry of Housing, the final arrangements are being conducted, after a recent agreement concluded between the two Ministries.
Last Modified 25 Dec 2018