Revealed The “Euromoney” Housing and Real Estate Finance Conference currently being held in Riyadh, that various housing support programs have accounted for 72% of the total value of real estate financing contracts in Saudi Arabia from the first quarter of 2017 through the end of the first quarter of 2023.
Mansour bin Madhi, CEO of the Real Estate Development Fund, confirmed during his participation in the fourth edition of the “Euromoney” conference, under the theme “Opportunities and Challenges in the Housing Market,” that the total number of subsidized mortgage contracts over the past six years exceeded 724,000, with a value of 429 billion riyals.
He highlighted the role of Mortgage Guarantee Program in serving citizens who are not creditworthy to obtain financing from financial institutions, noting that the program has provided guarantees to more than 116,000 beneficiaries. He also highlighted the program’s transition to the Saudi Housing Guarantee Company “Damanat,” with a capital of 18 billion riyals to establish a secondary mortgage market and build a model to support real estate developers, thereby contributing to an increase in the supply of off-plan properties.
He noted that the programs and initiatives have played a positive role in empowering beneficiaries, pointing out that the “Affordable Mortgage” program—which aims to reduce the down payment from 10% to 5% of the property value, with a maximum of 120,000 riyals, noting that the "affordable mortgage" program has benefited 104,000 recipients to date.
