Home Recent News 240 billion dollar Saudi Real Estate Market Opening to Turkey

240 billion dollar Saudi Real Estate Market Opening to Turkey

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Saudi Real Estate Market
Nova Property

The representatives of the Ministry, who have set off with a target of around 1.5-2 million social properties, have visited TOKI and Emlak Konut REIT, and asked for cooperation. According to the information, there is also a likelihood that that the Saudi Arabian King, Selman bin Abdülaziz Al Suud will offer incentives in order to meet the social housing requirements of his people. The system, where a subsidy of between 400 to 600 riyals are planned, is also expected to include payment installments of up to 20 years.

Saudi Arabia Real Estate Market
Saudi Arabia Real Estate Market

Murat Kurum, the Managing Director of Emlak Konut, who stated that they had had another meeting with the representatives of the Ministry within the scope of the visit of President Recep Tayyip Erdoğan to Saudi Arabia, on 29 December, said, “We had the first communication with Saudi Arabia a year ago. They came to visit us again 2 months ago. They are carrying out research throughout the world, as they are planning to build 1.5-2 million properties within 5 years. We explained our system and business model to them.”

300 million square meters of construction

Kurum, who stated that the country did not have a shortage of land in order to produce social housing, said,

The properties for the lower income group start from a minimum of 150 square meters, net. Costs increase more with horizontal structuring when compared to vertical structuring. The properties of the middle income group begin from 250 square meters. When the number of properties required is considered, this means construction of close to 300 million square meters, and according to this calculation, the volume of work is 240 billion dollars.

Very advantageous from their point of view

ConstructionKurum, who stated that Turkish contractors would open out to the Saudi market if the system is brought to life, said, “This will be a very good development, both for us and for them. We are in second place in terms of building contracting work in the world. Also, as TOKI and Emlak Konut, we have built 700 thousand properties in 10 years. This is also a big advantage from their point of view.”

The public sector also needs to be involved

Ergün Turan, the President of TOKI, stated that they had received requests for cooperation from around 90 countries, and said “Representatives from Saudi Arabia asked us for support in order to meet the property needs of the country. There is a need for 2 million properties in the country.” President Turan, who stated that they would collect together the contracting sector in Turkey under one roof, said, “We will obtain the work and share it with the companies in our country. We are discussing this with the organizations within the sector. They are also very eager. Legislation is required for the system. However, the public sector also needs to be involved in this from now on. We must bring to life a business model with a public – private partnership.”

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