Several realtors do not favor expansion of the mortgage system, according to an expert who said the financial crisis that hit most countries was a lesson. Dr. Abdullah Al-Ghamdi, a member of the Asharqia Chamber's Real Estate Committee, acknowledged, though that real estate mortgages are necessary, “not an economic luxury;” without it, banks would not be assured that their financial rights are preserved as they carry out their lending. Royal Decrees that raise the ceiling of loans from the Real Estate Fund and support for it have boosted demand, he noted. Prices for land to be developed for residences are stable, but are bound to increase because of these developments, he said. While prices may go up, the mortgage system's first impact will be a reduction in borrowing costs because the system reduces risks for banks; when they face lower risks, lending rates decrease, he said. With the system, which will be applied only as a solution to the problem of housing, banks will register real estate in borrowers' names, rather than in the names of the lending institutions, which has been the case, Dr. Al-Ghamdi said. The system also has clear regulations and detailed laws that preserve both parties' rights, he added. Real estate is governed by the well-known rule that prices go up as demand increases and go down as there's a greater supply, he noted. Prices for land for commercial development have decreased in recent times and demand is at a moderate level, he added. Land for investment property is in demand because it involves profitable assets, provides a safe way to preserve liquidity, and its value is usually retained, if not increased, no matter if the property is rented or sold as private residences, Dr. Al
