Plans are afoot to launch an electronic real estate index by the beginning of 1435 (Nov. 14), which will allow dealers to follow accurately and precisely the property market in Jeddah, an official at Jeddah Chamber of Commerce and Industry (JCCI) told local media.
Head of Real Estate Evaluation Committee at JCCI Abdullah Al-Ahmari said the index will provide data to investors, buyers and sellers on things related to building systems, infrastructure services and property market value based on similar transactions.
The index will also cover decisions made by bodies concerned with the real estate issues in Jeddah, he told Al-Jazira daily.
He said the Real Estate Evaluation Committee has signed a deal with a specialized real estate development firm to carry out a study to determine prices of commercial and housing units and make them available at the committee’s e-portal.
The study will showcase prices of lands in all plans and commercial streets whereby potential customers will know the real prices of such lands and property units, he was quoted as saying. Referring to the real estate index being issued by the Ministry of Justice, he termed it as a “generalized” index, which does not provide full facts on developments in the real estate market.
He urged the ministry to control buying and selling operations to ensure the accuracy of such transactions as most of them are finalized at high prices within the investment firms to get funding at higher prices from the banks.
According to the experts, the real estate market in the Kingdom is one of the biggest market in the world where its investments are estimated at nearly SR1.2 trillion, the second largest worldwide. The Kingdom will need some 4.5 million housing units by 2020 to meet the growing population in the country, investors said.