The Saudi Council of Ministers has given the green light to regulations governing the pre-construction sales and leasing of real estate projects, Invest-Gate reports.
Majid bin Abdullah Al-Hogail, Minister of Municipal and Rural Affairs who also chairs the General Real Estate Authority (GREA), outlined the aims of the new system. It complements existing legislation overseen by GREA to develop rules for the sector and keep pace with economic growth.
The system provides an important source of financing for developers while also offering buyers flexible payment plans. It establishes procedures for transparency, disclosure and protecting all parties’ rights in off-plan contracts.
Al-Hogail stated the regulations organize and license activities, automate processes, and increase financing options and investment channels.
This bolsters supply enhances investor confidence and creates job opportunities – sustaining activity as the Kingdom pursues Vision 2023 goals.
Drawing on the Off-Plan Sales and Leasing Committee’s work, GREA now has an integrated framework to qualify high-quality projects.
The Minister signalled this goes beyond governance to be a major incentive for real estate developers.
The approval establishes a formal structure for pre-construction home and land sales, seen as crucial to channelling investment into the sector’s promising opportunities across Saudi Arabia.