Egar system is scheduled to launch during the first quarter of this year, the system was announced before two years by the Housing Ministry of Saudi Arabia. Egar grasped the concerns of many writers in real estate field described to be an important shift in the real estate marketing. What is Egar?

As implied by the Housing Ministry, and as mentioned on its official website, Egar system is a digital service aims to improve the rental housing sector in KSA.

It is worth mentioning that rental sector in KSA is in sustainable growth due to the hike in freehold apartments and villas prices, in addition to lands scarcity in Saudi cities. Some experts expected Saudi Arabia Monetary Fund decision entitling all real estate loans borrowers to pay 30% of the loan as first installment to push rental market to grow exponentially.

Egar importance

Egar offers many services to Saudi citizen, enables the citizen to search for the suitable apartment on a large scale through the digital network. Enables the owner also from displaying his properties on the network. It also offers the electronic contract service which enables the tenant, owner, to draw the contract by a real estate broker through the digital network in a way that ensures their total rights, it also verifies all sides’ identifications.

Egar offers additional set of services including electronic payment, notification system to remind the tenant with the payment date, a massive data base of owners, brokers, and tenants, moreover, additional information about tenants like their payments history. This huge data base affordability will absolutely benefit official and private statistical firms, consultancies, and executive authorities.

see also:

Why is Juffair the best destination for rent in Bahrain ?

More about the new system

The new system was approved by the Saudi cabinet in February 2014, its main aim is to put an end to prices rigging and to manage the relation between owners and tenants.

The decision according many economic and real estate experts is considered one of the most effective economic decisions as it organizes the lives of around half the Saudi population who depend on leaseholding.

Yasser Al Morayshed, a real estate expert, in a previous press statement to Al Sharq Al Awsat newspaper said that Egar will limit prices rigging as it’s difficult for any owner to up the price while hundred other apartments are displayed in the same place with the old price.

Egar is a free service offered by the Saudi Housing Ministry and enables any individual in the kingdom to join by his national ID.

News websites mentioned last week that the number of registered brokerages in Egar until the moment has reached 205 brokerage, while registered tenants number reached 2995. The ministry announced that all brokerages and individuals will be entitled to register and all rents will be paid through Egar.

To know more about other renting systems see also:

All you Need to Know About Dubai’s Ejari System

Freehold & lease: Bahrain’s Real Estate Legislation boosts foreign investments

How many of these real estate terms do you know?

 

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