Saudi Arabia to deliver more than 40,000 housing units nationwide
Saudi Arabia is advancing its
housing agenda with a new tripartite agreement between the Real Estate
Development Fund (REDF), the National Housing Company (NHC), and the Saudi
National Bank (SNB) to deliver more than 40,000 housing units across 24
residential projects nationwide.
The initiative, signed in Riyadh
under the patronage of Majed Al-Hogail, Minister of Municipalities and Housing,
supports Vision 2030’s Housing Program, which seeks to raise homeownership
rates to 70 percent by 2030. Competitive financing options starting at 2.99
percent and subsidies of up to SAR150,000 ($40,000) will make homeownership
more accessible to Saudi families, particularly through off-plan purchase
programs.
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Arabia’s real estate and housing sectors make strides under Vision 2030
Nationwide Expansion and Economic
Impact
The projects will be distributed across multiple regions, ensuring inclusivity
in housing development and supporting balanced economic growth. By integrating
banking with real estate development, the partnership aims to diversify and
stabilize the housing market while reducing barriers for families aspiring to
own homes.
The collaboration will also
contribute to job creation and support broader economic diversification by
strengthening the construction sector and related industries. The NHC has
already launched two residential projects in Madinah and Riyadh, adding over 3,000
units as part of this expansion momentum.
Vision 2030 Progress
Saudi homeownership has risen from 47 percent in 2016 to 63.7 percent by the
end of 2023, according to Knight Frank. Real estate transactions in 2024
reached SAR267.8 billion, up 27 percent year-on-year, with residential sales
accounting for more than 60 percent of total activity.
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housing sector progressing towards Vision 2030 objectives
Riyadh, the Kingdom’s fastest-growing
city, is projected to require 305,000 new homes by 2030, driven by rapid
population growth and government-led housing programs. Ongoing giga projects
and infrastructure investments—valued at over $1.3 trillion—are expected to
further boost demand for housing nationwide.
Affordability and Market Trends
While housing prices, especially in Riyadh, have risen sharply—apartments up
10.6 percent and villas 6.3 percent in 2024—the government continues to
introduce measures to address affordability. These include reducing minimum
down payments to 5 percent in cities like Jeddah, as well as expanding
subsidized financing and urban renewal programs.
Despite affordability challenges,
demand for off-plan housing remains strong, particularly among middle-income families,
ensuring momentum in the housing sector as Vision 2030 goals advance.
Source: Middle East Economy
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