Out of the box

Fdfa real estate

Ismail Al Hammadi

May 18, 2021

There is much talk about real estate sustainability and how to achieve a balance in the real estate sectors and ensure the continuity of demand for real estate units to ensure the return that benefits the owner and the market together, but how can a sustainable real estate sector be established, and when can this be said?

It can be said that a sustainable real estate sector is achieved, if 70 or 80% of the following factors are achieved:

- When all the projects and real estate units offered in the market become desirable and compatible with what the dealers are looking for and their aspirations in terms of size, type and location.

- When the number of projects in the same region is successfully counted by the market, based on accurate and comprehensive studies, and this in turn contributes to balancing the supply and demand equation.

- When the cost of operating the property is in line with its price and the annual rental return, and the rental price is compatible with the tenant’s portfolio, especially for those with limited income groups, so that the rental market is not affected by the large movements of movement, and thus the rental market turmoil.

- When real value is placed to purchase real estate units according to their quality in line with the buyer's budget, and the door is opened to more who wish to own real estate for final use and realize their dreams.

- When other economic sectors continue to grow and expand further to expand employment and job opportunities, which are among the main factors in raising the population density, and thus raising the demand for residential real estate.

- When the investment and business environment is strengthened to become more competitive, attract investors, and create new fields of work.

In short, the real estate sustainability plan in any market was long and broad and calls for arranging and reviewing the strategies and plans of other economic sectors that are closely related to the real estate sector, such as tourism, industry, commerce, health, education, trade, hospitality, shopping and employment, and all other areas that have a major role in driving demand On real estate units of all kinds.

The real estate sustainability plan also requires the concerted efforts of everyone, the cooperation and involvement of all parties and parties to come up with comprehensive solutions for all problems of the real estate sector and fill all the gaps that affect its profitability, and it does not depend only on the development of dry and purely laws for the sake of modernization or change only, sustainability requires dropping successful experiences and mutual experiences With other markets on the ground to benefit the local real estate sector.

Real estate sustainability also requires good verification of the value and feasibility of the innovative initiatives and ideas that are put forward in the sector, not every initiative works, and not every innovative idea has a feasibility, every addition that has no added value to the activity of the real estate sector, even in a small percentage, is a burden on its path.

These lines were merely a general real estate exchange and a summary of experiences drawn from reality that might benefit its reader.

• "Real estate sustainability requires the concerted efforts of everyone, and the cooperation and participation of all parties and entities."

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