In Saudi Arabia, both residential and commercial real estate funds are available for investors. These funds are selected based on several key factors, including the track record of the fund manager, the fund's investment strategy, projected returns, risk profile, and the quality and location of the underlying properties. Investors can choose between income-generating funds, which provide regular income through rental payments, and development funds, which focus on the construction or renovation of properties with the potential for future profit.
When selecting a real estate fund, it's important to consider the type of properties the fund invests in (residential or commercial), whether it is an income-generating or development fund, the fund’s past performance, associated fees, duration, and the reputation and experience of the fund manager. These considerations help ensure that the selected fund aligns with the investor's financial goals and risk tolerance.