Under the “Vision 2030” economic diversification agenda, the Saudi Arabian housing sector has experienced revolutionary changes in the last several years. Families have greatly benefited from this programme, which has also helped to execute strategic measures to promote sustained growth.
The Saudis are investigating novel ways to interact with the private sector, both in attracting global developers and in assuring the sustained increase of homeownership rates, to reach a 70% homeownership rate by 2030.
The government wants to localise industries, encourage local content, and accomplish strategic housing programme goals through Rakaez. Enhancing national cadres, assisting local industries and small and medium-sized businesses, and raising production efficiency are the initiative’s four developmental objectives.
In terms of real estate contracts, about 750,000 have been financed, with a total financing amount reaching SR650 billion (USD 173 billion) from financing entities.
According to a recent estimate, the proportion of Saudi households with a home by the end of 2023 was 63.74%, up 16.7% from 2016.
One of the projects of the Kingdom’s Vision 2030 is the Housing Programme, which showed that the percentage of Saudi families with a home had surpassed the 63% annual target.
As stated in the organisation’s annual report, the results show that the Kingdom is on track to achieve its 2030 target of 70% house ownership. The programme helped over 20,000 families through developmental housing tracks last year, and it benefited over 96,000 families that qualified for housing support.
The Ministry of Municipal, Rural Affairs, and Housing reportedly signed more than 26,000 contracts for land development, including 11,000 contracts in the fourth quarter of 2023 to build cheap housing and increase the number of Saudis who can own a home, according to the programme.
The Saudi Press Agency stated that 10,904 contracts had been signed for the off-plan sales product.
“The programme approved the completion of over 800 plans, issued more than 3,000 building permits, and provided 10,000 housing units for developmental housing beneficiaries,” the agency said.
According to the research that examined the housing strategy, the rate at which ownership is increasing is an “indicator of success and continued improvement in the sector.”
The plan also considered how changes in the world economy would affect the real estate market, the Kingdom’s financial situation, and the ability of investors and citizens to make investments in and purchases of property.
Along with offering numerous job and investment opportunities, the programme has also started several initiatives and development projects to support the Saudi housing market. It has also drawn in developers and private sector partners to assist in finding housing alternatives for house seekers in different parts of the Kingdom.
Launched in 2018, the housing initiative aims to lower waiting lists for different social groups in the Kingdom and promote and facilitate Saudi house ownership through a variety of housing and financing choices.
Saudi households had to wait up to 15 years to receive housing subsidies before the introduction of Vision 2030.
“Homeownership climbed from 47% to more than 60% by the end of 2022 by improving access to financial support, streamlining processes, and digitising documentation,” the programme had previously stated.
The Women Factor In Home Ownership
With 36% of women in the workforce in the first quarter of 2023, female involvement in the workforce has reached the “Vision 2030” target. Saudi Arabia’s population now owns 67% of their homes, up from 47% in 1947, which puts the nation closer to its 2030 target of 70% homeownership.
The nation’s infrastructure development also has advanced significantly, and the Public Investment Fund’s assets have increased significantly. Interestingly, Saudi Arabia will host the 2030 World Expo in Riyadh.
Other notable projects include building opulent seaside resorts and establishing a National Semiconductor Hub, which shows that the country is still investing in infrastructure and sectors that will be competitive in the future.
The government’s strategic measures and engagement with the private sector are playing a crucial role in the Kingdom’s housing sector achieving one milestone after another, that too, in quick times.
Additionally, the programme has positively impacted women’s participation in the workforce and has led to substantial improvements in infrastructure and public investment. With continued efforts and investments, Saudi Arabia is well-positioned to realise its Vision 2030 targets and further enhance its housing sector and overall socio-economic landscape.