The Real Estate Development Fund has launched about 15 initiatives during the previous period to eliminate the waiting lists for loans, most notably 11 initiatives launched during the past six months, followed by the former Acting Minister of Housing Essam bin Saeed with the twelfth initiative aimed at facilitating and facilitating citizens to own homes and reduce the accumulation of waiting lists.

The Real Estate Development Fund has launched about 15 initiatives to eliminate the waiting lists, the most prominent of which are 11 initiatives launched during the past six months.

Disbursement of the loan in one go

One of the Fund's initiatives is the disbursement of the Fund's loan in a single payment to the beneficiary, after it was previously disbursed in four installments.

Guarantor Program

. The Fund also started the (Daman) program, which enables the beneficiary of the Fund's loans to go to a developer or seller to buy the property from him and the Fund pays the price to the developer directly and in one payment, the value of the loan was paid in pieces before, which was an obstacle, and sales according to this system in Riyadh reached 50 % of the procedures carried out by the Fund.

Reducing the size of the apartment to 175 m2

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The Fund also recognized in its initiatives that in order for a citizen to obtain a loan of 500 thousand riyals, the area of the apartment must not be less than 240 m2, but now it has reduced the area to 175 m2, including the common area and this step has facilitated the ownership of housing units in major cities.

The Fund has reduced the area of the apartment to 175 m2, including the common area.

Electronic Loan Selection Path

Among the initiatives launched by the Fund, initiative No. (15), which includes the implementation of the Masarat electronic program to select the appropriate loan by each eligible citizen, through the electronic portal that will be launched soon; so that he chooses the best program for him, which suits his needs, and reduces the waiting period, thus making the appropriate decision for selection.

Initiatives that deal with the individual and the land directly

<It is noted that the Fund's 15 initiatives deal with individual loans to meet the demands of applicants, and with individual land owners and real estate development companies, to increase the supply of housing units through the investment loan that will be applied in: Riyadh, Jeddah, Makkah, Medina, Khobar, Dammam. It also deals with unutilized raw lands through land development loans to pump more of them, especially in cities where prices are not commensurate with the needs of beneficiaries, so the solutions we propose are careful not to disrupt the reality of prices for all real estate products.

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Investment Loan

The Fund believes that the investment loan will be a turning point for the market supply, especially since it does not require the sale of housing units to beneficiaries of the Fund's loans, and the Fund has set a number (30 to 50%) of the total number at economic prices, that is, up to 500 thousand riyals, while the rest will be at the value that suits the demand in the market and corresponds to the capabilities of the developer and the needs of consumers, whether an individual or a real estate development company.

The Fund believes that the investment loan will be a turning point for the supply of the market, especially since it does not require the sale of housing units to the beneficiaries of the Fund's loans.

120K waiting for facilitation

<Despite the Fund's endeavor to enable citizens to own homes, there are 120 thousand people who have received approvals, but have not been able to benefit from these loans, so the Fund decided to look for solutions to facilitate citizens to enable them to obtain their own housing. The Fund attributed the failure of 120,000 citizens to receive their loans from the Fund in recent years to the high prices of land in the market, which made it difficult for citizens to own the land needed to obtain a loan to build their homes, as well as the high prices of villas and ready-made apartments, thus making it difficult to buy.