The property landscape in Saudi Arabia is experiencing a significant upswing, with a 15 percent year-on-year increase in the documentation of lease contracts, hitting an unprecedented high of 59,575 in the month of January.
The nation’s Real Estate General Authority has reported this peak as the most substantial monthly volume of commercial agreements recorded, propelling the cumulative total to over 1.5 million, according to details released by the Saudi Press Agency.
These numbers are a testament to the escalating demand for commercial real estate, indicating a robust interest in workspaces and business properties across the Kingdom.
Furthermore, this trend is in harmony with Saudi Arabia’s strategic vision to entice major commercial investments and assert its status as a key economic hub in the region.
In addition to the surge in lease contracts, there was a notable 26 percent rise in office real estate units in January when compared with the same month in the previous year.
The Ejar platform, an online system fostering the progressive development of the housing and real estate market in Saudi Arabia, registered over 6,600 offices in the same timeframe. Ejar is pivotal in addressing the market’s challenges and safeguarding the rights of all stakeholders in leasing transactions.
The success of Ejar is largely due to its enhanced reliability in the rental domain, particularly within the commercial and investment segments.
Its comprehensive approach includes the registration of all types of lease contracts to cater to the diverse needs of the commercial rental sector.
In a move to modernize rent payment methods, the Real Estate General Authority has mandated that, beginning January 15, all rent payments must be processed through the Ejar system. This policy encompasses residential rent payments, and no alternate proof of payment will be acknowledged outside of these sanctioned digital avenues.
The authority is also looking to eliminate paper-based payment receipts, as digital transactions will be concluded automatically, negating the need for physical documentation.
This digital transition is in line with the Saudi Cabinet’s directive to boost efficiency in rent transactions and to streamline the payment process for tenants, making it easier to remit funds to property owners.