Colliers International CEO Imad Damra said the Saudi real estate market is currently seeing an active internal movement of portfolios and investment funds.
Damra predicted, in an interview with “Al Arabiya” today, Tuesday, that investment funds globally will focus on real estate in the Kingdom, as these funds follow standard of environmental, social and institutional sustainability known as ESG, which helps them to choose properties that maintain their long-term value and that the cost of the property corresponds to this criterion.
He added that the forecast takes into account the decrease in global real estate supply due to the repercussions of the Corona pandemic, high inflation rate and supply chain problems, which offers an opportunity for the Saudi market, which is going through a active movement in construction and reconstruction, to be in future at the center of attention of these investment funds.
Imad Damra pointed out that investment funds have increased their investment in the residential sector internationally 5 times in the past three years, due to these criteria, although in past the sector was not desired by these funds.
The managing director of Colliers International explained that the real estate offer and the yield on it in Saudi Arabia are better, while international real estate yields are currently low and poorly profitable for international funds, due to the high cost of real estate by a large percentage as a result of high inflation and supply chain problems.
Damra said Saudi’s excellent infrastructure facilitated trouble-free work from home at the time of the pandemic and that demand in the office market is expected to increase to 6.4 million square meters within the next 10 years, in light of the increased contribution. of women and the expected increase in the population.
He explained that even with the idea of working from home, the demand for the office sector in Saudi Arabia is still promising.
Imad Damra claimed that the commercial complexes in Saudi Arabia have seen, from 2015 to date, a decrease in the rentable area by half because the focus has increased on entertainment and catering, and what distinguishes the property is the increase in visitor time in restaurants and entertainment.
He pointed out that there is a new trend in Saudi Arabia, which is the cooperation between landlords and tenants to increase real estate revenue.
Read More About: Business News