The impact of the Covid-19 pandemic is being felt in major industries in the region, including the real estate market, where developers are eyeing a reduction in unit prices by as much as 25 per cent and also company mergers to minimize business risks and significantly increase the ease of doing business, according to Maximiliano Development Management Services (MDMS).
"Since the virus outbreak, there has been a stiff competition between real estate developers and it will intensify as the unprecedented crisis has created a supply-demand imbalance in the sector," she explained.
Murad pointed out that the risk facing the real estate market was the inability of customers to pay the installments, thus causing a delay in the construction work.
"As a result, developers may require a shorter period for the installments which eventually leads to an oversupply of units, thereby creating a negative business cycle," she observed.
“The depth and breadth of the coronavirus outbreak’s economic impact on the real estate sector are still uncertain but real estate players will be well served to take immediate action to improve their businesses and also keep an eye on a future that could be meaningfully different," added Murad.
MDMS is a key player in the growing construction industry in Saudi Arabia. During the last three years, it had been working closely with the National Housing Company to develop housing projects for Saudi citizens.
The company had collaborated with the National Housing Company for the sale work of the Murcia project, one of the largest projects in Riyadh, which is the construction of more than 5,000 housing villas and apartments.
MDMS is also the sales consultant for the Murcia project phase 1 and 2 and successfully sold 90% of the phase 1 units, it added.
