The term real estate refers to the property, Building, land and any other resources which are present on the farm like crops, mineral, the air above it or the water in the area, etc.
Real estate is one of the top and trending business in the world. Many people buy and sell properties and make money out of it. Individuals who are not aware of what to buy and what to sell approach real estate agents or brokers who assist them in what property to buy and sell. These agent and brokers make a lot of money out of this.
The real estate industry works by the idea of producing, buying or selling the actual estate property. There are various types of real properties like the constructions of new buildings for domestic purpose, residential use, industrial and commercial. There are real estate companies which help you to choose and buy these properties at a price. These companies also provide real estate brokers who assist you in selecting your desired property based on your requirements.
The agents and the real estate companies work on a commission based process where they get money for the number of houses or commercial building they make a client sell or buy.
Saudi Arabia is one of the best places for real investment market. The country has one of the highest asset and prices. Saudi has one of the best housing prices in the world, and it is ever increasing. Even though the country is going through economic crisis the real estate markets are growing, and investors have a broad range of opportunities to invest in the real estate market.
The following are some of the sector’s reports and prices of Saudi Arabia:
- The property price index in Saudi Arabia.
- Residential Sector.
- Retail Sector.
- Office Sector.
- Hospitality Sector.
The real estate price index in Saudi Arabia:
The housing price index is calculated based on the commercial sector, agriculture sector, and industry. The current Real Estate price index are measured based on 65% of residential buildings, plots, villas, houses, and apartments; 31% of commercial plots and commercial buildings, shops/galleries and malls; 4% of the cultivated land.
Some of the highlights in residential areas are that the prices of apartments and small sized villas have remained the same without any changes. There is an average of 87% of residential compound occupancies.
There was about 95% occupancy in the market. Rental and occupancies growth was about 2%. The demand in the retail sector seems to be increasing and will continue to grow in the next few years.
The offices located in the central area appears to have increased demand, but the ones found in the secondary locations seem to have reduced occupancy and rentals have also reduced.
Majority of the hotel rooms supply located in the central area get high demand, and the demand for the luxury hotel room is always upon request. Thus the prices in the hospitality seem to be constant and stable.