The «Wafi» off-plan sales program continued to implement its policies aimed at supplying the real estate sector with more residential units (in accordance with the regulations), issuing 1,425 licenses in the first seven months of this year, including 20 licenses to market projects outside the Kingdom, while 1,405 licenses were allocated to three major projects within the Kingdom.
The program revealed on its website 56 projects across various sectors (residential, commercial, and industrial), spanning a number of cities throughout the Kingdom.
36 projects are under construction
36 projects are currently under construction, while 13 have been completed; however, 6 projects have been suspended for various reasons, and the steps taken by «Wafi» in licensing projects are in line with the Kingdom’s Vision 2030 to increase homeownership rates and develop the housing sector in Saudi Arabia, after companies obtained the necessary licenses from the committee to operate and market their products for off-plan sales.
These licensed projects are part of the Housing Market Support Program and align with the ambition to launch more housing projects to increase supply, despite the fact that there are currently more than 1.5 million vacant units, which will lead to a reduction in the cost of home ownership 30% in the coming years.
Licenses revoked for failure to meet requirements
On the same topic, Mohammed Al-Ghazwani, Secretary-General of the «Wafi» off-plan sales program, explained that the cost of marketing licenses for domestic projects is 25,000 riyals for the first issuance, valid for two months, and upon renewal, 10,000 riyals are added for each additional month. As for off-plan marketing, the initial license costs 35,000 riyals and is valid for two months, and upon renewal, 15,000 riyals are added for each additional month, Al-Ghazwani noted that the issuance of some licenses has been delayed, emphasizing that the committee does not reject any complete application, as it grants licenses within a record timeframe, provided that the justifications and requirements for obtaining any of the licenses issued by the Off-Plan Sales Committee are met.
Completed projects:
The program has successfully overseen 13 projects until their final completion, with a total of 2,192 real estate units—including apartments and villas—completed in these projects, spread across Riyadh, Dammam, Dhahran, Jeddah and Makkah.
Projects on which work has been suspended
Conversely, work has been suspended on six projects:
Al-Furida Residential – Phase 3, Lamar Towers, Al-Furida Residential – Phase 4, Al-Muhaisni Tower – suspended, Samaya – suspended. (Ratal Square – License Revoked).
Alerts and Warnings Against Unregulated Purchases
Given the newness of the system and its policies, many real estate experts are calling for ongoing education about the program and how to buy and sell through it, so that people do not fall victim to illegal purchases, or purchasing at inflated prices compared to what they will be in the next five years, when they will lose at least half of their total value, «Wafi» has reiterated its warnings against developers or their agents selling properties, signing contracts, or receiving payments from buyers within the Kingdom, if the off-plan marketing license pertains to properties outside the Kingdom, in which case payments must be made and contracts signed in the country of origin where the relevant projects are located, in order to protect buyers’ rights.
