THE LAND feature in GMR 2008
Saudi Real Estate market has never been so attractive and demanding..
There are no official statistics at present on the real estate market in Saudi Arabia; however, experts from the sector estimate that it is the biggest in the Middle East, with the highest prices per square foot in the world in some areas. But real estate activity in Riyadh – which accounts for about a third of all such activity in the Kingdom – could represent around $80 billion. Estimates vary slightly as to how much new housing is needed for Saudi’s ever-growing population. According to a study by a German company, the country will need 300,000 residential units over the next 15 years, calculating an annual growth in demand of 3 percent. It has also been suggested that there is a shortage of 225,000 residential units in Riyadh alone, and that the overall figure could be as high as one million.
In either case, real estate looks set to be a burgeoning sector as the economy continues to expand. As Eng. Karim Jabbour, CEO of The Land Real Estate Investment & Development Co. (The Land), says, “The success of other sectors is reflected by real estate activity, which gets its strength from the government, mainly through oil revenues.” The Land, a member of Al Rajhi Investment Group, headquartered in Riyadh develops residential and commercial projects in Saudi Arabia and other GCC countries, with a strong commitment to innovation, quality, affordability and access.
The Land delivers a total solution to each of its clients, from initial concept through completion and handover, to ongoing maintenance and support. By managing each interface in the construction process, they ensure the end result matches the original design concept. Working in unison with their partner companies in the Al-Rajhi Investment Group, The Land provides a unique approach in developing, maintaining & managing projects through cooperation and experience. The Land has major existing developments under construction today, providing high quality homes and offices, and significant returns for investors. That’s exactly why The Land and its partners are dedicated to acquiring and developing carefully selected, rewarding real estate investments, expanding their prime real estate portfolio for the benefit of investors, partners and customers.
One of the company’s masterpieces is Ajmakan. The majestic Wadi Hanifa signals the gateway to the oasis of Ajmakan, the most exclusive real estate development ever created in Saudi Arabia. Located in Al Khozomah, northwest Riyadh and envisioned by renowned Japanese designers Nikken Sekkei, Ajmakan is an elite desert village community. Built on 1.9 million sq m of land at a cost of over SR 6.5 billion, Ajmakan will be a lavish development encompassing palaces, hotels, exclusive villas, malls and exclusive retail space. The total built-up area of the project will be a massive 1.5 million sqm.
The housing market in Saudi Arabia is set to boom with the introduction of a long-awaited mortgage law.
The Land markets its own projects to an elite audience of investors (both Saudis and Expatriates) by the creation of a niche’-marketing approach, enforcing credibility of the company and its projects and upgrading the level of awareness on the exclusive living lifestyle in Riyadh in particular.
Because home-owners want the best in their homes or premises adapting the saying: “A Saudi man’s home is his castle”, thus, The Land work hard in identifying their target audiences, understanding their needs and offer a project so special, it’s built just for them.
The real-estate industry is switching from conventional housing projects to fully serviced neighborhoods and gated/secured communities; and because competition is limited to few companies in the high-end sector, The Land has already become a benchmark developer in the elite real-estate segment, and that’s what differentiates The Land from others.
Engr. Jabbour had added: “Marketing practices change everybody’s lives in everything we do. And we’re all after new exciting and attractive building designs, away from conventional works.”
Engr. Karim Jabbour is hopeful that some kind of mortgage system will emerge in Saudi Arabia, allowing more citizens and expatriates access to property ownership with a mortgage estimated at approx US$ 10.7 billion in 2008. With a robust economy with a growing GDP per capita reaching US$ 15,400, certainly the mortgage system will increase the demand for housing in parallel with the real estate market boom, which will secure accommodation to different audiences, particularly
considering the increase in the unemployment rate vs. increased building costs by approx. 82% and 81% consecutively. Furthermore, the real estate in the Kingdom had created a promising banking market and resulted in an increasing number of financing companies and banks entries into financing this boom that will increase further due to the financing options made available. He added: “The housing market in Saudi Arabia is set to boom with the introduction of a long-awaited mortgage law later this year. Furthermore, the Saudi housing market is currently nonexistent due to the lack of a coherent mortgage system. A number of banks in the Kingdom have begun offering Shariah-compliant home financing credit in anticipation of the law, which is set for approval by the end of 2008 or early 2009.” Engr. Karim Jabbour add: “The Real Estate mortgage system will definitely facilitate the appropriate legal and organizational aspects that will verify the relationship between the financers and the financees”.