Saudi bans promotion of off-plan developments

The promotion and sale of real estate development that are only at the planning stage have been banned in Saudi Arabia, it was reported on Tuesday.

The new dictate was part of a set of new rules passed by the Cabinet on Monday and covers the sale of residential, commercial, office, service and industrial units.

All advertisements and promotional material in local and foreign media has been outlawed , without the  according to Saudi daily Saudi Gazette.

The ban also includes marketing and events in the Kingdom or abroad to promote off plan developments – without the consent of the property committee.

The real estate measures will be presided over by specially convened committee will include representatives from the ministers of Commerce and Industry, Municipal and Rural Affairs, the Saudi Arabian Monetary Agency and the General Commission for Housing.

Developers will have to apply to the committee before being able to go-ahead with any project and will have to prove including technical and financial capabilities.  

Among other conditions to be drawn up by the committee are the rights of consumers and measures to protect them from being exploited by real estate developers and brokers, the newspaper added.