New ‘Rent’ program set to moderate real estate sector

Fatima Muhammad Saudi Gazette JEDDAH — The Ministry of Housing said that it would be starting the national electronic network for renting services soon. The network is a program offered by the ministry under the title “Rent.” This network, Mohammad Al-Buti, consultant of the minister of housing in charge for “Rent” program, said will prevent any manipulation of prices and will manage any increase in rental prices. The network will also put specific measures to regulate the real estate sector. Al-Buti noted that recruiting agencies and offices shall register in this network and will be given licenses. Such a process, he said, will ease the rent process and will enhance the trust between parties involved. The consultant was meeting businessmen investing in this sector at the Jeddah Chamber of Commerce and Industry (JCCI) and will be visiting other chambers to collect views and opinions and file them to the ministerial council so the program can be finalized and approved. Mazen Batterjee, deputy chairman of the JCCI, noted that the new program is expected to reduce the number cases of dispute between the owners of properties and those renting them. Khalid Al-Shwair, head of the housing committee at the JCCI, said that over 50% of Saudis are living in rented places. He added that the new program would provide a database that will help study the real state market, indicate investment opportunities and reduce risk factors. He added that the program would provide an overview about the rent process and prices as well as the selling prices. However, he said that the program would be rendered useless if the renting agencies and real estate offices do not register their names. The program, however, does not include hotels and furnished apartments, which will have a separate set of regulations, which the ministry is working on. “Rent” program will provide an electronic payment service that will go on the basis of unified contract that include: monthly, quarterly, half a year or every year. The program will also monitor the regularity of payment.