The CEO of the Real Estate Development Fund, Mansour bin Madi, stressed that the international praise for the housing sector and the real estate finance market confirms the success and efficiency of the performance of the Kingdom's Vision 2030 programs, pointing out that the integration in providing financing and housing solutions between the “Real Estate Fund” and ”Sakani” in partnership with the housing system, financing entities and real estate development companies contributed to raising the percentage of homeownership of citizens from 47% in 2016 to 62% by the end of 2020.<The praise of international institutions, including the International Monetary Fund, which expected the growth rate of residential mortgage lending in the Kingdom to continue, came as a result of the regulations, legislation and reforms of the housing system consisting of 16 government agencies in partnership with 18 private sector entities since the launch of the vision programs, which contributed to the growth of the mortgage finance market by 84% by the end of 2020 and a threefold increase compared to 2016.
Madhi explained that the integration in the provision of financing and housing services in light of the programs and regulations supporting the residential real estate finance market is proceeding according to specific strategic plans aimed at achieving the targets of the housing program - one of the programs of the Kingdom's Vision 2030 - with the aim of reaching the percentage of citizen ownership of their homes 70% by the end of 2030, stressing the continuity of housing support and immediate entitlement within subsidized mortgage loans by up to 100% after the waiting period for the citizen for the loan was up to 15 years.
He added that Vision 2030 identified the strengths of the housing sector, including the Real Estate Development Fund, which is a development arm of the sector, which enabled more than 500 thousand Saudi families in various regions of the Kingdom by the end of the first quarter of this year, indicating that the growth of the Fund's share of the subsidized mortgage loan by up to 100% from 7% in 2017 to 96% by the end of 2020.<He pointed out that the Real Estate Fund has succeeded in innovating effective financing programs and solutions, including the “Subsidized Loan” program and the financing and housing services it provides, which is a qualitative leap in the history of the Fund, indicating that the Fund has provided all its services electronically to provide more than 43 electronic services in addition to the self-service devices in the branches, the platform and the “Real Estate Advisor” application, in order to enable citizens to complete the procedures of “subsidized financing” at any time without being bound by time and place within high-precision electronic processes.It is worth mentioning that the IMF's Article IV consultation report praised the Kingdom's efforts in the housing sector, which contributed to raising the percentage of home ownership by citizens to 62% by the end of 2020, and stressed that the Kingdom's efforts have boosted lending and real estate supply, expecting continued strong growth in residential mortgage lending in light of government programs that support demand growth and enhance supply in the housing sector.
The IMF's Article IV consultation report praised the Kingdom's efforts in the housing sector, which contributed to raising the percentage of home ownership by citizens to 62% by the end of 2020.
