Saudi’s Real Estate Challenges: Avoiding Bad Investments of the Past

“The future is bright for the real estate sector, especially in the commercial and residential sector. Some land is overvalued but in general there is a lot of potential in the real estate market, especially when you choose the right project in the right location at the right time,” says Dr Mohammed A. Al-Ajlan, CEO of Ra-yek Real Estate.

“In the past, the real estate sector suffered from speculation and bad investment but that is now changing. In the past, if you bought a piece of land and kept it for a while you would see profits of 500% within ten years, without you doing anything to that land. If you have a good plot of land but do not invest. The speculation going on in terms of land and real estate is going to have to shift from just keeping a plot of land or a building to investing in that land or building. This means we have to choose the right opportunities.”