New Rules For Saudi

New Rules For Saudi

No longer can off-plan properties be marketed in Saudi Arabia – new rules introduced in the country which ban the promotion and sale of any developments that are at the planning stage aim to cut down speculation in the property sector and build investor’s confidence…

Developers of residential, office, industrial and commercial property are now banned from placing any adverts or promotional material in any publication if their project is still in the planning stage.

Property exhibitions, both local and international, are also banned as is any other form of multi-media publicity. The developers are not allowed to sell any of the properties off-plan either.

Saudi Arabia is desperate to avoid the boom and bust situation which often occurs as a result of over active speculation in a property market. Dubai is the prime example of this - speculation in the emirate has seen prices fall by as much as half in some areas over recent months.

Dubai had barred off-plan speculations on properties a while back in an attempt to eliminate the boom and bust scenario.

The Saudi authorities are also concerned that international investors have been put off buying property in the country as they thought they may be exploited, so these new rules were introduced as part of a series of measures to protect buyers.

There is also a new committee in place which will be responsible for examining applications for real estate development.

The new property measures will be presided over by the committee, which will include representatives from the ministers of Commerce and Industry, Municipal and Rural Affairs, the Saudi Arabian Monetary Agency and the General Commission for Housing.

The property committee will now have the final say on whether an individual property can be marketed and developers will have to apply to the committee before being able to go ahead with any project.

Courtesy of The Move Channel