Minister of Municipalities and Housing Majid Al-Hogail confirmed that the real estate market in Riyadh has begun to see price levels more in line with citizens" purchasing power, with efforts continuing to achieve greater balance in the coming period.
Al-Hogail explained, in remarks to Al Arabiya Business, that the regulatory package approved under the guidance of Crown Prince Mohammed bin Salman has proven effective on the ground, with its effects clearly reflected in land prices as well as rents and residential units in the capital.
He noted that the success of the regulatory legislation is directly linked to an increase in real estate supply, noting that the gap between supply and demand represents the primary challenge that needs to be addressed to ensure market stability and a return to more balanced levels.
He added that the expansion in the supply of residential units is keeping pace with the growth in demand, which reinforces the impact of regulatory reforms and helps achieve their objectives.
Regarding the housing sector’s targets, Al-Hogail explained that the Housing Program has established a plan to provide 600,000 housing units by 2030, noting that contracts for approximately 300,000 units have already been awarded through 2025. The relevant authorities also aim to complete 65,000 units this year and 85,000 units next year, followed by the construction of 60,000 units annually until the final target is reached.
He noted that the majority of these projects will be concentrated in six major cities home to more than 70% of the Kingdom’s population, ensuring that the high demand for housing in those areas is met.
He explained that the home ownership rate among Saudi families has exceeded the target set in the Kingdom’s Vision 2030, reaching 66.2% by the end of 2025 compared to the target of 65%, reflecting the progress made in housing programs.
Al-Hogail also discussed the results of his recent visit to China, explaining that it led to the signing of a number of agreements related to supply chains and the provision of construction materials for major projects being implemented by the National Housing Company in cooperation with local developers.
He emphasized that these agreements will help ensure a steady flow of construction materials, reduce transportation and supply times, and support efforts to localize industries and products related to the construction sector within the Kingdom.
He added that Saudi and Chinese construction companies possess growing production capacities based on modern construction technologies, which have helped shorten project completion times compared to traditional methods.
He emphasized that these efforts aim to maintain a steady pace in the launch of new residential units, thereby meeting market needs and limiting any potential future gap between supply and demand.
