Al Mazaya Real Estate Development is set to enter the Saudi Arabian market with the launch of a new company.
Saudi Mazaya has acquired a plot of land in Al Ahsa where it intends to develop a SAR400 million residential project and is studying the potential of developing a series of mega and diverse projects in various cities such as Riyadh and Jeddah.
“Saudi Arabia has witnessed a rejuvenation of its real estate market following its recent legislative and financial reforms, and the demographic forces that have laid the groundwork for sustainable demand for housing units,” Rashid Al Nafisi, chairman of Al Mazaya Holding (pictured above) said in a statement. “The issuance of the freehold property law that gives non-Saudis the right to own properties has provided a further momentum to the sector.”
Al Mazaya noticed that the majority of projects are targeting high-income groups, while the demands of the medium- and low-income groups have not been given a great deal of attention.
The Saudi Arabian property market is experiencing an unprecedented growth in terms of both the volume of investment and the scope and extent of construction activities. This boom is being driven by a combination of factors led by the increasingly urgent demands for residential units – fuelled by population and per capita income growth. Other factors are the increased budgetary allocations to real estate projects resulting in the launching of several economic cities, and the growth of religious tourism, which is consequently leading to the development of mega projects, designed to accommodate the growing number of pilgrims that visit the holy cities. These attractions have opened the door to heavyweight property developers to enter the burgeoning real estate market.
The country needs an investment of $640 billion (Dh2.35 trillion) in real estate market during the coming two decades, according to economic observers.
“The region should see the fruition of many of the industry’s minor projects. The past couple of years have seen the construction industry develop significantly despite the naysayers’ forecasts of doom and rumours of an impending bubble burst,” Nafisi told Emirates Business.
Al Mazaya to enter Saudi market