Following the Cabinet’s approval of the Ministry of Housing’s partnership program and the establishment of its new framework, the Ministry aims to strengthen cooperation with qualified local and international real estate developers to help increase the supply of housing units and support market supply, thereby contributing to the development of the housing sector and its development, thereby enabling citizens to own suitable housing at an affordable price and of high quality.
Responsibility Shifts to the Private Sector
As a result of the Ministry’s new policies, it has shifted its responsibilities to the private sector, represented by real estate development companies. Recently, it has signed agreements with a number of national companies in various cities across the Kingdom to build and construct tens of thousands of housing units in different cities and provinces of the Kingdom, offering a variety of options suitable for all segments of society and providing housing that is affordable and meets quality standards.
The Ministry has repeatedly emphasized that there are a number of criteria for selecting developers, such as the companies« financial capacity, the availability of administrative and technical personnel capable of managing projects of various scales, and the ability to create housing products suitable for the groups registered on the »Iskan" housing support portal, noting that it is in the process of signing additional agreements with several local and international companies to build housing units across all regions of the Kingdom.
Targeting 80 % of those registered on the lists
In this regard, His Royal Highness Prince Saud bin Talal bin Badr Al Saud, Advisor and General Supervisor of the Ministry of Housing’s Agency for Housing Support and Branches, explained that partnerships with the private sector will make it possible to provide more housing units within a price range suitable for the financial capabilities of approximately 80% of those registered on the Ministry’s waiting lists, through an economic model based on a contractual relationship between the public and private sectors. The program enables the Ministry to leverage the expertise of real estate developers to achieve a balance between supply and demand, while also providing eligible applicants with a variety of housing options featuring different designs and sizes that meet their needs, The Ministry will continue to sign more partnerships and agreements with a number of local and international real estate developers to achieve its strategic goal of supporting supply and stimulating demand.
