The Kingdom's Vision 2030 has rekindled hope in the real estate market in general and the residential sector in particular, as it clarified the vision's endeavors to find radical housing solutions that raise the percentage of homeownership in the Kingdom from 47% to 52% after four years from now, which makes it imperative for the real estate sector to keep pace with the stage and seek to provide new and diversified real estate products.
Real Estate Movement Towards Balancing Supply and Demand
Real estate movement towards supply and demand balance
Real estate specialists expect the market to revive and address its stagnation to implement this part of the vision, especially since the state previously allocated 250 billion riyals to build 500 thousand housing units, and now the Ministry of Housing has thrown its plans and strategies towards the private sector, with which it has concluded a number of agreements to build its housing units in various regions and cities of the Kingdom, in addition to using the expertise of foreign companies that intend to build 100 thousand housing units within the next ten years north of Riyadh, which is classified as the most needed city in the Kingdom to provide housing, not to mention the contracts concluded by the ministry with a number of national companies.Real estate experts expect the market to revive and address its stagnation to implement this part of the vision, especially since the state has previously allocated 250 billion riyals to build 500 thousand housing units. Therefore, based on these readings and the reality of similar steps, it is expected that the real estate market will witness a movement towards balancing supply with demand, which will play an important role in the realism of prices that are inflated in front of half of the citizens of the Kingdom who want to own a home that protects them from the concerns of rents and what it entails.
Kingdom Vision. And the activation of housing projects
The Kingdom's Vision 2030 has shown that it will work to activate better housing projects in the next phase, by enacting more laws and regulations, working to stimulate the private sector, and building an effective partnership with the citizen, to enable him to obtain a suitable housing within an appropriate period, according to various paths that provide financing and savings solutions commensurate with his housing needs, which means that the next phase will be a positive turn in solving the housing issue and making the real estate market return to its effectiveness in driving the national economy, especially we are in the stage of national transformation that promotes economic diversity and investment in various non-oil directions, especially that the
In the same context in which real estate professionals are optimistic, some call for the need for development companies to keep pace with the new reality that requires support and attention and from the competent authorities to make various facilities to operate at full capacity without limitation, including the consideration of labor laws that restrict the recruitment of competencies and skilled labor in the field and the enactment of more regulations related to financing issues.
Infrastructure projects revive real estate
A real estate report prepared by JLL considered that Saudi Vision 2030 will contribute to eliminating the slowdown that occurred in the current year in the real estate sector, and linked this to the continued implementation of a number of infrastructure projects, including the Makkah metro project in addition to other metro projects in Riyadh and Jeddah, which will stimulate the Saudi real estate sector over the next few years.
A real estate report prepared by JLL considered that Saudi Vision 2030 will contribute to eliminating the slowdown that occurred in the current year in the real estate sector, and linked this to the continued implementation of infrastructure projects insured by Crown Prince HRH Prince Mohammed bin Salman of Saudi Arabia. The Saudi economic reform plan announced on April 25 is positive news for the real estate sector, but its benefits of reversing the current slowdown will only be realized through the materialization of infrastructure projects and white land development.
JLL's report explains that the Saudi economic reform plan announced on April 25 is positive news for the real estate sector.
Revenues from white land fees
In the same direction, the vision is working to exploit the white lands that were recently addressed by imposing a fee of 2.5% on them. This fee is intended to stimulate the construction and development movement and generate revenues to be used in the development of affordable housing projects throughout the Kingdom. The Saudi Economic Resources Diversification Plan addresses the correction of housing ownership and affordability and aims to increase the rate of home ownership from its current rate by up to 5% until 2020.
Revenues from White Land Fees.
