Dar Ar-Riyadh project to go on sale soon, says Dar Al-Arkan chairman

06/05/2018 Argaam

Dar Al Arkan Real Estate Development Co. will start the sales of Phase 4 of Shams Ar-Riyadh project, ahead of the holy month of Ramadan, Dar Al-Arkan's Chairman Yousef Al-Shelash told Argaam.

 

The Saudi-listed real estate developer is looking to secure approvals from the Saudi housing ministry to start off-plan sales for the project, he added.

 

Shams Ar-Riyadh project comprises five phases. Phase 4 is set to be the largest of the project. Sales on three phases of the project (1, 3 and 4) are pending regulatory approvals, while Phase 2 is a staff residence built specifically for SABIC's staff.

 

Dar Al-Arkan is developing another 8-million sqm project in the Eastern Region, sales of which are expected to start by end of 2018 or early 2019, Al-Shelash said.

 

Besides, the company's Shams Al-Arous project, based in Jeddah, is expected to be finalized within two months, and sales may start by next summer.

 

“The company bought a number of land plots in Morocco and Eastern Europe, and plans to launch projects in the second half of 2018”, Al-Shelash said.

 

Dar Al-Arkan reported a net profit of SAR 331.12 million in the first quarter of 2018, versus SAR 12.23 million in the same period of 2017, on higher property sales.

 

Al-Shelash attributed the solid results to a policy shift that included a divestiture from several investments.

 

The Saudi real estate market has come under pressure since mid-2014 as lower oil prices impacted individual purchasing power and business investment appetite.

 

Al-Shelash said that his company's robust sales have offset the market's downside although "Sales margins have dropped from some 45 percent to 18 percent in the past few years."

Comments {{getCommentCount()}}

Be the first to comment

loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.