Complementing the Ministry of Housing's ambitious plans to activate its partnership with the private sector and benefit from its resources and expertise in housing construction, the Ministry of Housing has invited real estate developers and investment companies that own completed or under construction housing projects to apply to the Ministry of Housing to market them to citizens entitled to housing support, after being evaluated by specialists, and this important step is the shortest way to satisfy the multiple demands to provide housing units for subsidy recipients.

Solid steps to fill the gap

<This step is of utmost importance because it coincides with several data that directly serve the interest of the citizen and facilitate direct benefit from the decisions and approval of loans, especially since the Real Estate Fund announced last week the approval of the third installment of loans approved within the budget of the fiscal year 1436-1437 AH in the amount of 3.In the same direction, the Ministry of Housing announced the beneficiaries of housing support in all cities of the Kingdom, numbering 754,571 citizens, including 713,739 men and 40,831 women, most of whom are government employees with 451,044 citizens, and 150,318 eligible citizens working in the private sector.

The Ministry of Housing announced the approval of the third batch of loans approved within the fiscal budget of 1436-1437H.

5+13 real estate developers

<All these factors motivate the private sector to enter more into the issue of partnership with housing, and the ministry is commended in this regard for adopting new and varied methods so that real estate developers find themselves in front of several options to activate their strategic partnership with "housing" such as the construction and marketing of housing products directly to beneficiaries, we see this in the project west of King Khalid Airport in Riyadh, which includes 830 apartments that were recently marketed or what is known as the first phase, To come the second phase to build 11 thousand apartments distributed in Jeddah, Dammam, Qatif and Medina, in partnership with a number of real estate developers to become a system of partners (5 + 13) developers.

<The second model offered by Eskan to real estate development companies is the full adoption of residential projects, provided that the ownership of the land on which the residential products are built belongs to the developer himself, according to the instruments and attachments that support this, and this model positively parallels the decision to impose fees on white land within the urban area, It encourages the creation of strong alliances between companies among themselves, especially since some companies have become very ambitious and look at the issue of housing in a strategic and national manner, so it was reported in the news that some companies (intend) to hold understandings with international companies with distinguished expertise in building and constructing residential complexes in order to speed up the process of completing the task.

Reduced requirements and multiple implementation mechanisms

In the past, the ministry has announced that it has reduced the requirements that may hinder the partnership with the private sector by reducing maintenance years from ten to five years, rescheduling financial payments to developers, and limiting external parking lots for residential buildings. It has also exercised great flexibility in setting mechanisms to implement projects by not generalizing the mechanisms to all projects but rather making each project its own mechanism that suits it.

The project is expected to benefit from a variety of implementation mechanisms. It is expected that 200,000 citizens will benefit from the new model of partnership with real estate developers, according to the figures announced within the housing support program, which is the total number of housing loans available in all governorates, for purchase or construction, and will be disbursed in installments.