Saudi Property for sale sector is the fastest growing one  in Saudi Arabia with more than SR1 trillion in investments. The growth is said to be the second highest in the world after Shanghai, according to Solaiman Al-Majed, Chairman, Tanmiyat Group.
But the burgeoning market needs to be regulated and organised in order to avoid scams, of which there have been quite a few, as well as achieve continuous progress and maintain investor confidence.
Apart from businessmen, thousands of ordinary Saudis have invested their money in real estate, in the expectation of large profits. But according to financial analyst Abdelmenem Jamil Addas this was not a healthy trend. “People think that they are seeing the dawn of a new era in the real estate market, that it will bring unimaginable riches and prosperity to all. This overconfidence will have dangerous consequences on our economy,” he added.
He said that the recent rise in real estate prices was being fuelled by artificially low short-term interest rates and a huge increase in bank loans. “We should not forget that as soon as interest rates rise, the rally in real estate prices will come to an abrupt end,” he explained. “Any market that is rising because of an increase in bank’s loans ought to be viewed with great caution,” he said.