Economic and real estate experts confirmed that the Ministry of Housing's products and initiatives during the last seven years have contributed to reducing the prices of its real estate products by half in addition to securing housing for the majority of citizens, with different purchasing capabilities, as witnessed by the demand for marketing centers for these products, such as what happened recently in Sands Jeddah, Al Mubarraz and North Riyadh, which were booked by citizens within a maximum period of a month.

The price level is suitable for purchase

The Ministry has set the prices of residential products in the “Housing” program between 250 to 750 thousand riyals, and the current housing and financing products suit the needs of all citizens, and vary every month to include mortgage loans that are granted without interest, as well as land for construction and ready-made housing units that vary in size and location.

Experts confirm that the prices are suitable for purchase.

The experts“ emphasis on the impact of the new mechanisms, programs and financial solutions pursued by the ministry comes based on the initiatives adopted by the ministry in 2017 and the pumping of 280 housing products and its intention to launch nearly 300 thousand new housing products in 2018, ranging from free land, housing unit and mortgage financing, will enhance the state's direction aimed at increasing the number of homeowners compared to renters, and the General Authority for Statistics, according to a survey conducted in 2017, announced that the percentage of Saudi ownership of buildings increased to 491 TP3T.

Statistics Authority, according to a survey conducted in 2017, announced that the percentage of Saudi ownership of buildings has increased to 491 TP3T.

Addressing the negatives of the past period

<For his part, real estate developer Yasser Awad pointed to the ministry's success in reducing the prices of its housing products, explaining the need to address the negatives that occurred in past periods, and the first of these negatives, taking into account that its real estate products, whether residential units, villas or financing products, are commensurate with the purchasing power of the citizen,” noting that ”the lack of consideration of this aspect caused major issues, which confused the general scene in the real estate sector in the Kingdom, for example, the mortgage loans provided by the Real Estate Development Fund to citizens without considering the financial status of these citizens and their ability to pay the loan installments on time, created a crisis “Reducing the prices of the ministry's products, I see it as a big step, which will enhance the rate of ownership in Saudi society, as a large number of Saudi families with limited income cannot afford the half a million that was previously specified to build a housing unit, today the family can find a housing unit for half that amount.”

Increased supply lowers prices

On the same subject, economic analyst Fadel Al-Buainain called for giving the ministry more powers to determine the prices of housing products in the private sector, and to oblige real estate developers with reasonable prices for them and the citizen wishing to buy. Al-Buainain praised the pricing policy for housing products and determining their range by the Ministry of Housing, describing it as a good thing and in favor of the ministry's directions and Vision 2030, which seeks to raise the ownership rate in the Kingdom from 47 percent to 52 percent by 2020,

. <Al-Buainain added: “It should be borne in mind that the Ministry of Housing's orientation to bring modern construction techniques will contribute to increasing the supply of housing products at good prices, as well as providing jobs for Saudi youth on the other hand, and their involvement in more housing projects that are being developed.”

Al Buainainain added. Al-Buainain drew attention to the ministry's policy at the beginning of addressing the housing crisis by focusing on providing appropriate financing for housing applicants did not solve the issue because it stimulates demand for housing, without a large supply of housing products, which led to higher prices.