Real estate investment remains the best option for preserving the value of money in the face of inflation and exchange rate changes, especially after the Corona crisis and the consequences of the Russian war, which made investors more cautious in choosing a safe investment destination.
Here comes real estate investment, one of the most popular and attractive forms of investment around the world. The property provides investors with the opportunity to achieve monthly or annual income (depending on the rental method) through rent, in addition to benefiting from the increase in the value of the property over time.
Important factors when investing in real estate
There are factors related to real estate specifications that may make investing in it a unique opportunity, including:
Property location:
Location is a crucial factor in the success of real estate investment. Choosing a good place can increase rents and value in the long term, especially if it is close to important roads, main axes, and services, or if the area has a good future because, for example, a project is being built or developed there. Investor choose the location with caution.
Degree of demand for renting and owning:
Renting real estate is the primary source of income for most real estate investors. It is preferable for the investor to seek expertise that will make it easier for him to choose the best and easiest property, or as they say, the cheapest in renting. Here, it is necessary to know supply and demand to attract tenants and manage the property efficiently.
Financing to purchase a property:
You may not have sufficient capital to purchase a property for the purpose of investment, and there are various methods for obtaining financing, including borrowing or bank financing. Likewise, if your goal is to build a property and then sell its units, you may be able to market it by saying that its properties are available for purchase in cash or through real estate financing. This is part of developing a marketing strategy to attract tenants or buyers.
Management and maintenance:
Maintenance and management of the property plays an important role in maintaining value and attracting tenants. The investor must be prepared to deal with the challenges associated with maintenance and management effectively.
Risks and challenges facing the real estate investor:
Real estate investing comes with risks such as market fluctuations and unexpected costs. The investor must understand these risks and be prepared to manage them.
In conclusion, real estate investing can be rewarding for investors who understand this market well and follow sound investment strategies. An investor must constantly learn and remain prepared to take advantage of the opportunities and challenges in the world of real estate investment.
Types of real estate investment in the Kingdom of Saudi Arabia
There are several types of real estate investment in Saudi Arabia. Of which:
- Investing in commercial real estate: This includes purchasing and leasing commercial properties such as offices and shops.
- Investing in residential real estate: Apartments or villas can be purchased and rented to residents, or real estate flipping can be done (developing and maintaining the old property or finishing it and then selling it at a higher price).
- Investing in land: It is possible to purchase land for construction or agriculture and wait for its value to increase over time and keep it as an asset or develop and build on it or create an agricultural project or greenhouse or raise livestock and birds (of course if it is land designated for agriculture).
- Investing in real estate projects: It is possible to participate in large real estate projects with real estate developers.
- Investment in hotel and tourism properties: This includes investment in hotels and tourist resorts and renting daily rental apartments.
- Investing in real estate funds and real estate investment funds.
Investing in the Saudi Stock Exchange
The Saudi Stock Exchange is one of the old and powerful stock exchanges that started in 1932. The Saudi financial market is known as “Tadawul”, and it is considered the ninth largest stock market in the world.
Forms of investment in the Saudi Stock Exchange:
Buying shares: You can buy shares of companies listed on the Saudi Stock Exchange. Through trading, you can buy or own part of a specific company and participate in its profits and losses.
Investing in ETFs: Investing in ETFs (index funds and ETFs), which allows investors to diversify their investments.
Knowledge and follow-up invested for a successful investment in trading
The most important means of successful investment in the stock market is scientific study, as well as following economic news, political and economic developments, and listening to economic experts, as economic and political changes affect the performance of financial markets.
It is preferable to obtain financial advice from an expert or certified financial advisor before starting to invest in the Saudi Stock Exchange. This will help you make informed decisions and reduce risks.
You may need to contact a financial intermediary. There are many accredited financial intermediaries in the Kingdom to provide aid, advice, and assistance in executing buy and sell orders at the best time.
Investing in the stock market or real estate?
Here an important question arises: Is it better to choose real estate investment in cities in the Kingdom, such as Riyadh, Jeddah, Dammam, and others, or to invest in the Saudi Stock Exchange (Tadawul)? The most important answer is your ability to bear risks.
It is worth noting that investing in real estate is safer for those who do not have investment or practical experience in the markets or do not have the time and effort to understand and study the stock market. Real estate investment guarantees you a good passive income. Likewise, real estate investment guarantees you to preserve the value of your money in the face of inflation. Likewise, the value of The property increases over time.
Investing in the stock market can be riskier due to stock price fluctuations, but it offers the possibility of diversification and ease of trading. Success in the stock market depends on good research, analysis, and smart decisions.
You can easily choose the best investment by educating yourself through the Saudi Aqarmap platform, which uses its expertise and advanced artificial intelligence techniques to help you choose…