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إعادة ارسال الرمز :

There is no doubt that the real estate development sector is going through a difficult phase at this time. Indicators from the General Authority for Statistics have shown a rapid decline in property prices, exceeding 25% over the past three years. Economic and financial changes that have occurred and will continue to occur have a clear and significant impact on the decrease in prices in the real estate services and activities sector. One of the most apparent reasons for this is the departure of expatriates, expected to exceed 160,000 annually, which could leave parts of residential neighborhoods vacant, especially in urban cities. Additionally, the rising cost of essential goods has led many to postpone purchasing property, as buying real estate is no longer a priority for some individuals compared to other priorities that continue to expand, potentially weakening liquidity for everyone. Another key reason for the price decline is the imposition by the Ministry of Housing of fees on undeveloped lands that have not completed their development or received final approval from the competent administrative authority. This effectively places undeveloped land like a “hot coal” in the hands of its owner, who seeks to develop it before sale and transfer. However, a real estate investor intending to develop their land faces many risks that may make them think carefully before taking such a step. Chief among these are risks related to the commercial real estate market, where limited cash flow can negatively impact financial returns. This also applies to the residential and residential-commercial sectors, which rely heavily on changes in supply and demand, especially in a general climate that is not conducive to property purchases or investment at this time. Among the most significant regulatory risks are the obstacles developers face within government agencies responsible for real estate development. Real estate development projects sometimes suffer from significant delays in completing the necessary licenses and approvals due to various reasons, most importantly the lack of electronic linkage between the competent administrative authority and other relevant administrative and judicial bodies. Some administrative bodies impose difficult-to-meet requirements on developers, such as mandating an increase in planning percentages beyond what is legally required. Developers often cannot appeal to administrative courts for fear that the administrative body will refuse to complete development procedures for the rest of their lands. Additionally, there is not absolute reliability in some property documents that have already completed all legal and regulatory procedures, even if they are documented by the competent judicial body, which gives them evidentiary power and limits the grounds for contestation to violations of legal or regulatory principles. A developer may face disputes over the validity of property documents at any time during development, potentially causing the administrative authority to withhold development procedures for years while verifying the document's authenticity, especially since some government agencies halt land development procedures without orders from competent judicial authorities. Developers may also encounter regulatory procedures that hinder the development process, sometimes rendering it unenforceable. For instance, changes in land use can occur where a developer begins development assuming the land is commercial, only to be surprised by the administrative authority changing its use for any reason, requiring the developer to redo all development procedures legally. Some of the most important measures to mitigate regulatory risks for real estate developers include: 1-Judicial review of issues related to the reliability of property documents, issuing clear procedures that confirm absolute ownership of the land. Those who develop land later found to belong to them can seek compensation through administrative courts from the administrative or judicial body that failed to verify ownership or boundaries, ensuring the affected party receives compensation for damages or lost profits. 2-Ensuring that new procedures issued after a developer begins land development do not apply retroactively. The developer has started based on the procedures in effect at the beginning of development, and new procedures should not halt the project or allow the developer to claim compensation from the relevant administrative authority. 3-Administrative agencies should not require developers to fully develop all disputed or overlapping land plots at once. Developers should be allowed to develop areas with confirmed ownership while postponing development of disputed plots, which are often minor in size, allowing projects to proceed smoothly.
"There is no doubt that the real estate development sector is going through a difficult phase at this time, as indicators from the General Authority for Statistics have shown a rapid decline in property prices, exceeding 25% over the past three years."