Mohamad Itani, CEO, Esrar Real Estate

Despite the challenges of the pandemic, the property management sector in the Kingdom of Saudi Arabia has been able to tackle them and remain robust. The move to introduce laws regulating the relationships between real estate market players has certainly led to significant growth, however, there are still many factors that the property management sector has to be aware of. In an interview, Mohamad Itani, CEO, Esrar Real Estate, shares insights on the driving factors behind the KSA property management sector and how it has evolved. 

Excerpts from the interview:

Q.1. How have you seen the KSA built environment change in the last 1 year, especially concerning the property management sector?

Ans.  In the past year, we saw the built environment evolving and adapting to the unprecedented circumstances imposed by COVID-19. While challenging, activities and investments remained robust, especially in property management. These activities were fueled by large-scale development projects being built according to Saudi Vision 2030 whose goals include strengthening the sector’s economic contributions and increasing the housing supply for the Kingdom’s citizens. The move to introduce laws regulating the relationships between real estate market participants also led to significant industry growth on top of the megaprojects under Saudi Arabia’s sovereign Public Investment Fund (PIF) such as NEOM, AMAALA, and Qiddiya. 

Property management is a vital aspect of the real estate community, especially if viewed through the lens of investment and financial planning. It is vital to ensuring the property’s sound and exceptional physical condition for the greatest possible returns. In Saudi Arabia, effective property management is necessary to maintain the quality and suitability of any property investment. 

Outstanding property management practices, together with in-depth real estate consultancy services, help drive market growth. In the case of consultancy services, they foster excellence, quality, and professionalism within the property industry, as well as result in more enlightened investment decisions. 

Q.2. What kind of challenges does the industry still need to overcome?

Ans. One of the challenges involves the full application of the sustainability concept in the local industry. Fortunately, awareness is growing and compliance with sustainability standards is increasing. We owe this to the fact that both real estate and construction stakeholders are now recognizing the positive impact of reducing their environmental impact on their brands and bottom lines. Another is the need for increased professionalism and competitiveness within the market, as well as the creation of a more enhanced environment that is attractive to both local and foreign investors. To achieve both, the first step is to reduce risks and errors that may cause huge resource losses. Real estate consultants play an important role in this regard.  

Q.3. In your opinion, what should be the focus of property managers in the new normal? 

Ans. The new reality has brought to light various aspects necessary to drive the market’s growth and development amid unexpected changes. Sustainability is one of the fundamentals, and property managers have rightly taken steps to set their net-zero carbon emissions goals. But we need to point out that deploying sustainability goals must start as early as during the planning and design phase of construction through to implementation, execution, delivery, and operation for the objectives to be effectively attained. 

Also, the new normal has prompted us to give a stronger emphasis on people’s health and wellbeing. It further demands more efficient management of buildings and delivery of services to tenants without increasing costs. Focusing on asset management and commercial services is just as essential as implementing an outstanding property management strategy. 

Q.4. What will be the main driving factors in the KSA property management sector for 2021?

Ans. The local market is poised for significant growth amid increasing interest in local giga-projects, the building of relevant partnerships, and the rising number of property developments in Saudi Arabia. Most of these projects are not only world-class but are also designed to cater to the needs of next-generation property buyers through the incorporation of advanced technological innovations. All these are expected to result in an influx of investments this year, especially those coming from large global developers. We also see real estate consultants playing a bigger role in the industry’s steady development in 2021, as more investors continue to tap their services for a more strategic investment approach in the Kingdom.