On the sidelines of the Wafix Forum and Exhibition organized by the Off-plan Sale Committee “Wafi”, the committee revealed that the number of housing units in the hands of the Off-plan Sale Committee “Wafi” since the start of its work, about 60 thousand housing units, while the committee targets about 480 thousand housing units during 2020.

Wafi revealed that the number of housing units in the map sale committee is about 60 thousand housing units, while the committee targets about 480 thousand housing units during the year 2020.

90% of units for housing beneficiaries

For his part, Mohammed Al-Ghazwani, Secretary General of the Committee, confirmed that 90% of these units will be for housing beneficiaries during the coming period. Al-Ghazwani explained that the number of licenses issued by the off-plan sales committee when it was affiliated with the Ministry of Trade and Investment amounted to about 69 licenses, while the number of licenses after the committee moved to the Ministry of Housing reached about 165 licenses.

Ghazwani Al-Ghazwani pointed out that all off-plan sales program projects serve housing and real estate fund beneficiaries and private sector beneficiaries, pointing out that the market value of off-plan sales projects targeting the private sector has so far reached 40 billion riyals.

Financing Challenge

He explained that there are two main challenges to off-plan sales, the first of which is “financing” with regard to individuals and real estate developers, explaining that banks are reluctant to finance the real estate developer due to the presence of land with the Ministry of Housing, and they are reluctant to finance individuals in off-plan sales projects due to the marginalization of the deed with a certain party, and pointed out that the absence of a guarantee against financing or a guarantee, confirming the completion of projects on time or not spending the value of financing on other things.

The challenge of the banking sector

While the second challenge was the acceptance of the “principle by the banking sector,” pointing out that the issue was discussed in the expert body and with the support of most government agencies, appropriate solutions were found and all the legal exceptions that the program needs were put in place.

He explained. “Today, the committee has the right to exclude “marginalization of the project land” if there are guarantees provided by the real estate developer or there is financing for this project, and that the land is not marginalized in favor of another project."

Mohammad Al-Ghazwani

Mohammed Al-Ghazwani said that there is a segment that was neglected during the past period, namely the small and medium segment of real estate, noting that this segment is the one that built many real estate projects and contributed to the increase in growth in the Kingdom.

Mohammed Al-Ghazwani explained.