During a press conference held by the ministers of housing, health, and education to outline their programs related to the National Transformation Program, Majid Al-Hogail, Minister of Housing, that the ministry has transitioned from being an implementer and developer to a regulator, supervisor, and catalyst for the housing sector. He explained that the ministry has conducted a study of the reality of the housing market in the Kingdom, examined the requirements necessary for its development and improvement, and to identify the obstacles it faces and how to overcome them. He noted that this has resulted in the development of an integrated vision and strategy aimed at regulating and facilitating a balanced and sustainable housing environment, based on the creation and development of a set of programs that stimulate both the private and public sectors through cooperation and partnership in regulation, planning, and oversight to facilitate housing for all segments of society, in line with Saudi Vision 2030 and National Transformation 2020, which emphasized increasing homeownership rates, and the enactment of a number of regulations and rules that help stimulate the sector and build an effective partnership with citizens and the private sector to provide suitable housing through homeownership pathways using financing and savings solutions tailored to citizens" housing needs.
Empowering Demand and Supporting Supply
The Minister of Housing outlined the Ministry’s vision of stimulating demand and supporting supply in the housing market, thereby contributing to the provision of adequate housing for all citizens through a variety of high-quality, affordable options, thereby achieving stability and social well-being. The vision includes a range of programs and initiatives aimed at developing and regulating the sector, within the framework of the National Transformation Program, which was approved by the Council of Ministers last Monday.
Strategic Housing Goals Under the National Transformation Program
Al-Hogail stated that the Ministry is one of the sectors that has presented a range of plans, programs, and initiatives under the Saudi Vision 2030 and the National Transformation Program, with all of these programs falling under two primary objectives: meeting the housing needs of eligible citizens and supporting the housing supply, in line with Saudi Vision 2030"s goal of raising the homeownership rate to 52 percent by 2020, the Ministry is working to achieve a number of strategic objectives within the Vision, namely: improving the performance of the real estate sector and increasing its contribution to GDP; stimulating the housing supply and raising productivity to provide housing products at appropriate prices and quality; enabling citizens to access appropriate housing financing; these three strategic objectives lead us to: enabling citizens to obtain suitable housing, creating an attractive environment for local and international investors and strengthening their confidence in the national economy, increasing the supply of housing units to 50 percent, and reducing the price of housing units as a percentage of total annual per capita income."
Continuing to deliver housing units at a rate of 8,300 units per month
The Minister of Housing expressed his gratitude and appreciation to the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud—may God protect him—for his approval of the National Transformation Program, which is part of Saudi Vision 2030, which, with the help of God Almighty, aims to achieve further sustainable development across all sectors, thereby bringing greater prosperity and stability to citizens and fulfilling their aspirations and hopes. He noted that the Ministry of Housing, as part of its efforts to provide suitable housing for all citizens, began, at the start of last Sha’ban, the allocation and handover of 100,000 housing units to 100,000 families. The Ministry began by handing over housing units in the Hafar Al-Batin Housing Project, followed by the Riyadh Al-Khubara Project, and then the Al-Shanan Project, noting that it will continue the allocation and handover throughout the year, at a monthly distribution rate of approximately 8,300 housing units. These units include ready-to-move-in housing units—such as villas and apartments—as well as land plots and financing solutions.
Challenges Facing the Ministry
There are a number of challenges facing the housing sector that have been studied in an effort to overcome them, including: the limited availability of housing units suitable for different segments of society; the difficulty in obtaining adequate housing financing; the inefficiency of the real estate sector; and heavy reliance on government funding, He noted that the Ministry has launched a series of programs and initiatives designed to overcome all obstacles, correct the housing market situation, achieve the necessary balance between supply and demand, and increase productivity to provide housing units at appropriate prices and quality.
Initiatives to encourage development on private-sector land
Al-Hogail emphasized the continued activation of partnerships with private-sector developers to implement projects on Ministry-owned land through initiatives that have been developed to support the development of housing products on private-sector land, as well as the development of housing projects on land subject to "white land" fees, as well as the development of informal settlements and city centers to maximize their use, focusing on regulating urban density, and developing ministry-owned land to benefit participants in the housing support program, while also working to utilize public-sector land.
Activating Guarantees for Mortgage Contracts
Regarding the mechanism for enabling citizens to obtain appropriate housing financing, he emphasized that the Ministry is working to activate guarantees for mortgage contracts, strengthen savings programs, and utilize financial support for mortgage financing, implementing the affordable housing program and cooperative housing initiatives, as well as developing the eligibility program, noting that these programs will help facilitate access to appropriate financing.
Mechanisms and Systems to Improve the Ministry’s Performance
The minister continued: “ The Ministry of Housing aims to improve the performance of the real estate sector and increase its contribution to GDP. To this end, efforts have been made to regulate the rental market through the “Ijar” program, as well as to improve the performance of the off-plan sales program, work toward establishing the National Real Estate Authority, the Landlords’ Union and Unit Classification Program, establishing the Developers’ Services Center (Itmam), imposing fees on undeveloped land, working to establish the National Center for Population Research and Monitoring, as well as working to establish the National Housing Company in an effort to ensure the sustainability of the Ministry’s resources”.
