Do you realize, dear reader, the vastness of the real estate market in the Kingdom of Saudi Arabia?
The real estate sector in our beloved kingdom ranks second after oil in the national economy, contributing significantly to the Gross Domestic Product (GDP) and providing job opportunities and creating new investment opportunities for investors and businessmen.
It is expected that the size of the real estate market will grow from over 241 billion riyals this year to 353 billion riyals by 2028, with an annual growth rate of 7.89%. This highlights the importance of the real estate appraisal profession, which is one of the crucial elements in making investment decisions that help preserve public and private financial savings and assets. The most precise importance here lies in the various purposes of appraisal.
It should be clarified that the purpose of the appraisal is the primary influence on the execution of the appraisal process. Based on this purpose, the appropriate appraisal method is selected, and it might also happen that there are different sets of values for one property or asset.
Here are some of the various purposes of appraisal:
- Appraisal for selling or buying real estate.
- Financing and mortgage purposes.
- Accounting and legal purposes.
- Estimating rental value.
- Insurance purposes.
- Real estate portfolio analysis.
- Dispute and partnership resolutions.
- Tax assessment.
- Public auctions.
- Zakat and taxes.
- Real estate investments.