Housing Projects – During the current year, 2020, the Ministry of Housing aims to serve more than 300,000 families through various housing solutions that meet the aspirations of Saudi families and are tailored to their financial capabilities within the options offered by the program, including helping more than 130,000 families move into their homes, adding more than 100,000 new housing units in partnership with real estate developers, and providing 90,000 new residential plots, The Ministry exceeded its 2019 target of serving 200,000 families and achieved results benefiting 300,041 families, of which 109,162 have moved into their homes.
Homeownership Rate Rises to 700%
As we celebrate the sixth anniversary of King Salman bin Abdulaziz’s accession to the throne, may God preserve him, this report details, with figures, the success of the Ministry of Housing through the «Sakani» program and its significant achievements in 2020, most notably the increase in home ownership among Saudi families to more than 7,00% as of last September, with approximately 96,633 Saudi families having moved into their homes, compared to approximately 12,059 households that were able to move into their homes last January, while other beneficiary households opted for units under construction in the suburbs, residential land, and self-build options.
The Journey to Actual Homeownership This Year
In detail, since the beginning of 2020; approximately 12,059 families moved into their homes in January, while 11,687 families moved in last February, and 11,414 families moved in in March, in April, 7,990 families; in May, 10,721 families; in June, 11,259 families; and in July, 10,524 families;and last August, 8,748 households moved into their homes, while in September, the number of households that moved in reached approximately 12,231, bringing the total to 96,633 households.
In line with the housing program targets set out in the Kingdom’s Vision 2030, the Ministry seeks to enable Saudi families to own their first home by offering a range of options that meet their aspirations and fit their financial capabilities, as well as by launching additional housing projects, to facilitate faster access to suitable housing at lower prices through multiple options and affordable down payments, with the goal of raising the homeownership rate to 70% by 2030.
335,332 first-home VAT certificates issued since the program’s launch
The Ministry has also issued 335,332 VAT exemption certificates for first homes since the program’s launch through the end of September, including 72,666 certificates for beneficiaries outside the Ministry, and 262,666 certificates for beneficiaries of the Ministry of Housing and the Real Estate Development Fund, with the aim of increasing homeownership rates among citizens.
To facilitate communication with citizens and save time and effort, the «Sakani» mobile app offers convenient services such as immediate eligibility determination, browsing various housing and financing options, immediate reservation of units and land, issuance of price quotes, electronic issuance of land contracts, access to real estate advisory services, issuance of VAT-exempt certificates for first homes, selection of model designs for self-build beneficiaries and electronic issuance of building permits, notarization and issuance of lease agreements, and electronic transfer of housing subsidies between spouses.
91,000 households benefited from subsidized loans for prefabricated units through the third quarter of 2020
The number of households benefiting from Mortgage Loan to purchase ready-to-move-in housing units to more than 91,000 Saudi families through the third quarter of 2020, as part of the housing and financing options and solutions provided by the Ministry of Housing’s Sakani Program to its beneficiaries, as part of the program’s efforts to achieve its housing objectives.
The option to obtain a profit-subsidized mortgage loan to purchase a ready-to-move-in residential unit as part of the program’s efforts to provide diverse homeownership options, enabling citizens to own suitable housing units that meet their expectations and fit their financial capabilities by offering profit-supported housing financing of up to 100 percent from appropriate financing entities for an amount not500,000 riyals.
The option to purchase units from the open market is distinguished by its speed in enabling eligible citizens to own suitable housing by providing appropriate support for the purchase of a ready-to-move-in unit from the market, and giving beneficiaries the freedom to purchase a housing unit in any location of their choice, provided that the unit complies with the terms and conditions of the financing institution and is within the citizen’s purchasing power, in accordance with the financing institution’s terms and operating procedures.
58,319 families have benefited from the subsidized mortgage loan for the self-build option
The total number of residential units under construction reserved by beneficiaries since the beginning of this year reached approximately 61,552 units, while contracts for 74,014 residential plots have been issued in various cities, governorates, and centers, in addition to 58,319 families who benefited from the subsidized mortgage loan for the self-build option.
The program offers its diverse housing solutions and options through simple and accessible procedures via the «Sakani» app to facilitate home ownership for Saudi families, The program also displays the names and national ID numbers of beneficiaries on its website. Or visit the online platform, which offers various services and conveniences, such as a real estate advisor, access to financing offers from lenders, electronic issuance of land contracts, architectural designs, and tax certificates, among others.
Saif bin Salem Al-Suwailem, the official spokesperson for the Ministry of Housing, that the program will continue to provide a variety of housing units and residential land in partnership with qualified real estate developers through streamlined procedures and a range of options and services that meet all families" needs and preferences, as part of the Ministry’s commitment to accelerating home ownership among citizens.
