REAL ESTATE DEVELOPMENT CO.

Saudi Arabia 2020 | REAL ESTATE & CONSTRUCTION | INTERVIEW

TBY talks to Khalid Radwan, CEO of Saudi Airlines Real Estate development Co. (SARED) on contrcutionand real estate sector.

Khalid Radwan

Can you walk us through the company's current portfolio?

SARED manages all the properties owned by the holding group and is structured into two divisions: development and O&M. Through the development arm, we built Saudia City and are on hold for a new renovation masterplan that will be backed by feasibility studies by Colliers and JLL. Once these studies are finalized, we will present the plan to the board and engage in this new era, split into four phases to be developed in eight years. This represents our key strategic priority, although we remain active on other fronts too. Aside from Saudia City, we are currently working on a huge flight operation terminal development in Medina and the development and renovation of several buildings in Tabuk and Al Baha. Outside the Kingdom, we are working now on real estate in London where we have a headquarters and a warehouse at Heathrow Airport.

How can the investor community regain trust in the Saudi real estate market?

The current market conditions, especially on the residential side, offer an excellent opportunity for both developers and investors alike, as prices were reaching all-time highs both in terms of land and property. In 2020, we will witness the final correction. Some actors will exit the market, others will re-enter, and many will be willing to take advantage of the new reality. The real estate market cycle likely hit the lowest point in 2018, with many foreigners leaving the country, and is now starting to pick up. This means that this is the right time to buy because in four years we will witness another peak. These cycles are healthy for the market, and savvy investors should know how to position themselves accordingly. Saudi Arabia also provides them with the competitive advantage of a proper structure until 2030 and 2050 through the vision.