Dr. Abdel Hamid Al-Wazir:

The real estate sector needs a balance between cost, return and project quality in light of the high iron prices.

The real estate sector needs a balance between cost, return and project quality, in light of the high prices of building materials due to the high prices of raw materials, said Dr. Abdul Hamid Al-Wazir, Chairman of the Board of Directors of Arabisk Real Estate Development Company.

He added that the coming period needs companies that depend on knowledge and studying the needs of the real estate market, more than financial solvency, explaining that it is possible for companies to possess strong financial solvency, but the lack of knowledge of the requirements of the real estate market leads to losses for these companies.

He revealed that the coming period will witness many mergers and acquisitions to strengthen the financial solvency of some companies, but for the success of these alliances, experience must be available to face the challenges that arise in the real estate sector.

He emphasized that his company possesses strong financial solvency, in addition to knowledge and experience of the requirements of the real estate market, which makes it adhere to all its current projects and expand in other real estate projects during the coming period.

He explained that despite these challenges, the company did not move to require customers to bear the price differences, as the company was directing all sales funds to the implementation of projects on a real-time basis, which helped it achieve achievements in its projects on the ground, and did not witness many challenges compared to developments in the real estate sector.

He pointed out that the Arabisk Company is heading during the coming period to reduce the profit margin, out of its belief in the challenges that arise in the sector, and in appreciation of the country’s efforts to overcome the global economic crisis.

He continued that the rise in iron prices led to a rise in real estate prices by no less than 30%, which exposed many real estate companies that achieved high sales during the last period to many problems, explaining that the Developers Association discussed this problem and reached the submission of notes to the concerned authorities to demand By issuing a law legislation from the House of Representatives to preserve the rights of customers and developers, in addition to submitting memorandums to the Central Bank to provide facilities for developers by guaranteeing the project at a low interest rate.

He explained that many companies have recently tended to stop selling their projects, pending a study of the real estate market and knowing its requirements during the coming period, to get out of these challenges with minimal losses.