Saturday, 2 January 2016

Who is responsible for significant increase in real estate prices?

The Kingdom of Saudi Arabia is perhaps the richest and most flourishing countries of the globe. It does not know how to turn back and run the other way. Instead, if any challenges must meet the Kingdom they face them head on and that makes the country so strong and stable even today. The economy, infrastructure etc. all contribute to the country and only raises its prospects for remaining at the top. If you have ever had the chance to visit the Kingdom of Saudi Arabia, you would know that there is no area where it has not excelled and achieved excellence. Most importantly, one must applaud the projects regarding the beautification of the country. They have completely transformed the barren desert into a fully revolutionizing country.

The magic of the Kingdom doesn’t stop here. Every year, there are a number of infrastructure projects that are either in the process of being established or have been opened for the people of the country. Most of these have been funded and operated by the Ministry of Housing while others have been established by certain important Arab individuals. Long gone has the time when people owned land. Now they have begun investing in projects that would be a process of benefiting them as long as the project remains active. Though, now one cannot blindly trust anyone. We now live in a very contemporary world that only knows how to take advantage of those around.

Recently, it has become quite apparent that the Real Estate agents are beginning to convince people who own property tricking them into selling it. According to insights, it has been said that travel agents fool people telling them that the land prices are beginning to fall and now would be the right time to sell them. The bullets they feed to these people are not even hard. On the contrary, the prices of land within the Kingdom have been quite high! The reason being is the extreme value because of the number of projects that either private companies or governmental companies want to establish in order to flourish the Kingdom even more. According to the Minster of Housing, he has introduced many loans that will help control the increasing price of land and rent, but we all know that isn’t going to help.

So what is the story of these hungry real estate agents? Why would any of this benefit them? What really happens is that the most vacant land that is available for grabs, the larger the price would be offered by interested parties. Since the Kingdom is large and has an equally large population, finding vacant land is now scarce.

Private parties would pay up and would try to secure a good amount of area that would be the foundation of their project. The agent can set a cut for himself in all of the deal and keeps everyone happy just by telling a few lies here and there. If one really has to blame someone for the inflation, blame these real estate agents!

Source: Saudi Gazette

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