Real estate investment guarantees a fixed income, or what is known as passive income, which is a continuous financial income that does not require continuous effort, from renting. Real estate investment remains the best alternative because it provides you with passive income and preserves the value of your money without the dilemmas of inflation calculations.
Diverse Opportunities for Safe Investment
The forms of real estate investment in Saudi Arabia vary between renting real estate and flipping the property (buying a property for the purpose of renovating or finishing it, or even waiting for the good development of the neighborhood in which the property is located, then selling it at a higher price, and achieving a good profit), or also investing in real estate funds. There is also investment in selling by buying various lands for the purpose of construction and real estate development, or even selling the land after a period of purchase and making a profit when the neighborhood or city is built.
Real Estate Investment in Saudi Arabia
Since the announcement of Vision 2030 to develop the Kingdom, diversify its economy, and rely on various economic activities instead of being limited to oil, the Kingdom has been working significantly to develop the real estate sector, increase the real estate wealth of the Kingdom, and enable the Saudi citizen to obtain housing or the best home for a lifetime instead of renting.
It was necessary to activate these initiatives, expand and encourage real estate investment, and overcome the routine obstacles that facilitate the purchase of residential properties or lands.
In recent years, the Saudi real estate market has witnessed rapid movement, especially with the growth of real estate development and construction, which means an increase in demand for lands allocated for various construction in the cities of the Kingdom.
Real estate investment in Saudi Arabia does not require huge capital, but there are options that suit different budgets, starting from buying a home and renting it to buying construction land and building an entire residential project on it.
Advantages of Real Estate Investment in Saudi Arabia
- The value of the property has increased over the years.
- Protection of assets and capital from inflation and currency price changes.
- It does not require much effort to monitor and manage.
- It does not require much experience in business management and marketing to invest in it.
- The real estate sector has grown significantly, especially after Vision 2030, which guarantees the investor a good return and great demand.
- The presence of major real estate development companies in Saudi Arabia.
Real estate Investment in Buying and Selling land
First, in order for any real estate project to exist, there must be construction land in a good location near important facilities, services, and roads. The geological and structural nature of the land must also be acceptable to construction and development and bear foundation digging and concrete pouring.
Investing in construction land is a large and powerful investment that guarantees its owner good profits if he chooses a plot of land with an economic future well. It is also a long-term investment, but it will yield good fruits in the future and preserve the value of the money.
Buying building land is the least risky and most profitable type of real estate investment among other types of real estate investments, but it is recommended to seek the opinion of people with real estate experience before investing and purchasing land, such as real estate agents and land planners.
It is worth noting that real estate investment in construction lands requires strong and large capital, especially if the goal is to build projects or compounds that include residential units or commercial or industrial real estate and then sell or rent them. Therefore, it may be better to share with several investors the costs of purchasing the land and construction.
Types of Real Estate Investment in Land
There is not one way to invest in land, but rather there are different ways. For example, it is possible to buy land and keep it for several years until facilities are extended to it, then sell it at a good price.
Another successful investment project is purchasing building land and then offering it for rent so that it is prepared for investors and obtaining a monthly, semi-annual or annual return for a specific period according to the agreement.
Advantages of Investing in Buying and Selling lands
- Real estate investment in land does not require exorbitant maintenance and development expenses, especially if the goal is to sell it after a while.
- Land prices are much cheaper than real estate, so when purchasing you will not have to take loans from the bank or submit your property for a mortgage.
- Low value of property taxes on land compared to other properties.