We have noticed an increase in momentum in the regulation of the real estate sector in an upward direction, so a question arises here: Are legal changes a fundamental driver of the real estate sector?
This comes as we witness the real estate sector movement that have started from 2019 Q4, and an attempt to find out if the legislative environment has an immediate and direct impact on the real estate sector.
Until the end of the 2021 Q1, the total number of legal changes related to real estate increased by more than 111% for the 2016-today period, over the period 2010-2015:
It is noted that the year 2020 was an exceptional year in the number of legal changes, as more than 30 changes occurred in the legal environment for the real estate sector, with a change of more than 138% compared to 2019. Would 2021 exceed 2020?
In the following diagram an illustration of the various legal tools for changes in the legal environment of the real estate sector (most by Cabinet decision):
The question to you now,
How can these changes to the legal environment be linked
to the shape of the real estate market in Saudi Arabia
from 2020 and beyond?