Investors in the local real estate sector have emphasized the need to involve the private sector in order to achieve the Ministry of Housing’s objectives through its strategies, noting that this would effectively balance the growing demand gap, as the private sector acts as a partner in constructing housing units following the completion of infrastructure projects in partnership with the government.
Speaking to “Al-Youm” on the sidelines of the Ministry of Housing’s reaffirmation of its commitment to the deadline it set for identifying eligible recipients and beginning the allocation and distribution of available housing support programs, it is imperative that the Ministry manage land within urban areas with real estate professionalism by launching a new package of residential real estate projects that meet demand, in addition to the projects previously announced.
To begin with, Engineer Abdullah Al-Ahmari, Chairman of the Real Estate Valuation Committee at the Jeddah Chamber of Commerce, explained that the Ministry must forge government partnerships with the private sector and real estate developers in the housing market, in order to meet housing demand by distributing housing projects according to need across the Kingdom’s regions, in accordance with mechanisms that ensure fairness and transparency. Engineer Al-Ahmari said: “The Ministry announced a census of those in need of housing, yet it failed to consider the situation of residents of hamlets and villages—who are most in need—and who endured the hardship of traveling to cities to enter their data on the Ministry of Housing’s website, especially since most of these hamlets and villages lack internet access. Nevertheless, the Ministry of Housing did not take the initiative to consider these individuals, while most applicants were excluded because electricity meters were registered in their names—without the Ministry bothering to examine the cases individually— and whether the electricity meter in the excluded applicant’s housing unit is suitable for the citizen or not.
Engineer Al-Ahmari emphasized that the Ministry should have contracted with international companies to carry out its projects, as foreign companies would commit to implementation and might offer better prices than local companies, noting that the Ministry must clear the waiting lists at the Real Estate Development Fund, as these lists have been pending for years and a ”land and loan“ mechanism must be implemented within a specific timeframe.
For his part, Hussein Al-Barakati, a member of the Real Estate Committee at the Jeddah Chamber of Commerce, affirmed that the Ministry of Housing is trying to fulfill its role and provide housing units, and that it should have enlisted the private sector in real estate development by contracting with developers, contractors, and marketers, as the achievements of the Salman Bay project by the Jeddah Municipality Real Estate Development Company demonstrate that this approach is the most effective one implemented, and the Ministry of Housing needs to do the same. All units in the first phase have been sold, and work is currently underway on the second phase, Demand has exceeded expectations, and these residential projects were financed through off-plan sales with the approval of the Ministry of Commerce, as the payments received from buyers are sufficient to cover all the costs required for such projects, He emphasized that the reduced prices set for these 25,000 residential units were the primary factor encouraging demand; given that the prices are considered almost nominal compared to current market conditions, second, the land on which the project is built is government-owned land belonging to the Municipality, and the project was constructed there; and the completion of this project is the greatest proof that the Ministry of Housing’s work requires a mechanism such as the one under which this project was implemented. He emphasized that the Ministry of Housing will not succeed unless the private sector participates in the financing, implementation, and marketing of its projects, whether through the Real Estate Development Fund by streamlining its procedures—which still contain obstacles preventing citizens from acquiring ownership of any residential apartment— including situations where, upon approval by the Real Estate Development Fund for a residential unit, the full amount is not paid upfront; rather, the citizen makes an initial payment and the second payment is deferred, while the owner of the residential units refuses to accept the Real Estate Development Fund’s installment plan, forcing citizens to seek loans from banks at interest rates that increase their costs.
It is worth noting that the Ministry of Housing has reaffirmed its commitment to the previously set timeline for beginning the distribution of available housing support programs to eligible recipients in all regions of the Kingdom, renewing its commitment to serving citizens in all regions of the Kingdom and providing suitable housing to those who do not own it. It noted that the distribution of housing projects in all regions will be carried out through a mechanism that ensures fairness and transparency for those who meet the eligibility criteria for housing subsidies.
The Ministry clarified that it is in the process of finalizing the verification and processing of applications in coordination with the relevant authorities, and by the end of this month, it will send text messages to all applicants whose applications have missing information or require corrections, so they can review them by logging into the Eskan portal at WWW.eskan.gov.sa. It added: It will announce in the coming period the start date for the distribution of housing subsidies in each region, as well as the phases and mechanism of distribution and the number of eligible recipients in the Kingdom as a whole and in each region, in accordance with the principle of transparency, This is in accordance with her previous announcement that the process would take place within seven months starting from 6/5/1435 AH—the date on which the Eskan portal was launched for all citizens to submit their applications for housing assistance— so that, before the end of this year, the allocation phase for available housing units to eligible citizens can begin, with distribution based on their priority scores across the Kingdom’s various regions.
The Deputy Minister for Studies and Planning and the Ministry’s official spokesperson, Engineer Muhammad Al-Zami”, clarified that the Ministry has not announced any figures regarding eligible recipients of housing support who applied through the “Iskan” housing support distribution portal “Iskan,” with the exception of what was previously announced regarding the number of eligible recipients in the Jazan region, which is 51,000. He added that the figures regarding eligible recipients circulating in some media outlets are incorrect and are not based on any official source from the Ministry.
The official spokesperson confirmed that the Ministry of Housing has applied the eligibility mechanism and priority criteria to all applicants who met the eligibility requirements stipulated in the housing subsidy regulation approved by the Council of Ministers on March 5,1435 AH, and that the allocation process is conducted electronically through the “Iskan” portal with ease and convenience in all regions without any human intervention, thereby reinforcing the principles of transparency and fairness. He added that the application process remains open and ongoing for all those who meet the requirements.
*Al-Yaum Newspaper*
