Data analysis and consulting in real estate can save mega projects from costly mistakes
The real estate sector has been one of the key investment drivers in the Saudi economy over the past few decades, attracting huge investments for vital projects that serve the Kingdom’s ambitions to transform its economy under the Saudi Vision 2030 and become a preferred investment destination that serve a more diversified, resilient and sustainable economy.
The sector continues to gain importance as more investments pour into the market especially following the royal order from the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al-Saud to merge the Ministry of Housing and the Ministry of Rural Municipal Affairs and form “Ministry of Municipal and Rural Affairs and Housing”.
This move promotes the national efforts towards enhancing planning, providing adequate housing solutions for all Saudi families, and achieving a 70 per cent ownership rate by 2030. It goes along with the plans to double the size of Riyadh to accommodate 15 million people as part of the Riyadh Development Strategy, targeting to become amongst the ten largest economic cities in the world.
These efforts further resulted to the sector’s growth valued to reach more than SAR 2 trillion, increasing its role in attracting investment opportunities for entrepreneurs, emerging small, medium, large and multi-national companies, as well as creating opportunities for employment for current and future generations.
However, despite real estate’s major role in the economy, studies reveal that leading market players rely only on one per cent of information that is available through experts and market consultants. It begs the question, what if the real estate market responds more to the sector’s need through specialized consultations and updated data? To what extent can the sector take advantage of in terms of prospects that might be available through real estate consultancy?
The Saudi economy is poised to take a major leap considering the announcement by His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince, Deputy Prime Minister, and Minister of Defence, to raise the value of assets of the Public Investment Fund of the Kingdom to reach SAR 4 trillion by the year 2025.
To keep pace and ride the wave of the expected boom, there is a growing need to strengthen the readiness of the real estate sector and engaging in professional services can ensure proper planning based on latest information and trends that could support the success of leading real estate projects. I can also help identify the suitable methods that work to a certain selected type of real estate product, be it commercial, residential or building offices, enabling developers to determine the technical and general specifications, pricing and marketing mechanisms, among others.
Data analysis of relevant market information can provide guidance to real estate investors in making the right decision, especially in terms of deciding for the right project which may turn out to be costly. Having the right information adds to the success factor of the project and in achieving the expected investment returns.
Data and consulting pay an important role in reducing the possibility of errors which can be very costly in large real estate projects and lead to big losses.
As the goals set within the Saudi Vision 2030 drive new growth opportunities for the local real estate scene, the country has witnessed several new large-scale development projects that demand for advanced planning, data analysis, and research to aid in decision-making.
These set of information can come through consulting with experts which understand the trends and on the ground realities and thereby, provide insights that could help developers reduce costly errors.
Real estate developers cannot ignore the importance of data analysis and consulting as some of the key foundation to the success of ambitious projects.
The latest information and expert advice have become an integral aspect in the implementation of the huge projects to become a success. Adopting to these practices will help further accelerate the growth of the real estate sector in the Kingdom and optimize potentials and investments that support a comprehensive sustainable development.
Mohamad Itani, CEO at Esrar Real Estate Consultancy