Survey: Abdullah Al-Salih: The Kingdom’s Vision has brought about many impressive successes across all economic and service sectors, leading experts and observers to be optimistic about achieving growth and progress rates that exceed targets, The housing sector is one of the sectors that has seen its share of tangible achievements. The “Amlak Real Estate" newspaper" conducted a survey on the challenges facing the sector and possible solutions to increase homeownership rates and make residential real estate prices more affordable..

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Abdulaziz Al-Omar: Investing in Various Housing Projects

Abdulaziz Al-Omar, an expert and trainer in real estate, affirmed that Saudi Vision 2030 aimed to comprehensively improve the housing sector in the Kingdom by providing affordable, high-quality housing for citizens and increasing homeownership rates. It has also worked to boost investment in urban infrastructure and create job opportunities for citizens in the real estate development, building, and construction sectors.

Al-Omar explained that the Vision has been highly successful in restoring confidence in various housing programs by relying on clear, strategic plans and a realistic approach to improving the housing sector. It has provided comprehensive and integrated solutions that include infrastructure development, diversifying and expanding real estate financing options, and incentivizing and supporting the private sector and real estate developers to contribute to providing suitable housing for citizens.

Al-Omar identified a number of points through which the private sector can contribute to raising the homeownership rate to achieve the annual targets, leading up to the strategic goal of 70% of citizens owning a home by 2030.These points are as follows:

1. Investing in social, mid-range, and luxury housing projects to provide diverse and affordable housing options.
2. Developing innovative financing programs with favorable terms and reasonable interest rates.
3. Partnering with the government to develop large-scale housing projects and build the necessary infrastructure.
4. Providing educational programs for citizens on the importance of real estate investment and how to take advantage of available real estate opportunities.
5. Providing additional services such as maintenance and property management.

6. Forging local and global partnerships with major companies to raise the standards of quality and competitiveness in real estate development and affordable housing.

Al-Omar noted that rising real estate and property prices, along with restrictions on real estate financing, are among the most significant obstacles limiting homeownership rates among citizens, in addition to the cost of various administrative procedures.

To overcome these obstacles, Abdulaziz Al-Omar proposed the following steps:

1. Assess the current and future state of the Kingdom’s housing strategy to curb rising real estate prices and provide affordable housing.
2. Developing affordable financing programs and offering low-interest loans to citizens.
3. Encourage and support municipal authorities to expedite infrastructure development and ensure the provision of comprehensive basic services in residential areas, with the aim of approving the largest possible number of housing plans to control prices.

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Abdulaziz Al-Fayez: Supporting the private sector to become a partner in the Vision

Abdulaziz Ibrahim Al-Fayez, CEO of Emaar Auctions, said that the housing sector, in light of the Kingdom’s Vision 2030, has achieved significant progress and transformation, racing against time to reach its goal. The home ownership rate rose from 47% in 2016 to 60% in 2022. Meanwhile, the Vision’s goal is to raise the rate to 70% by 2030.

Al-Fayez explained that the Vision, through the growth it has achieved across various sectors and the increase in employment opportunities, the housing sector has faced enormous challenges, undertaken infrastructure development projects and initiatives to provide decent housing for citizens and residents, and launched programs to support the private sector so it can serve as an active partner in realizing the Vision and increasing homeownership rates.

Al-Fayez noted that despite the impressive progress, the sector still faces some obstacles. The most significant of these are rising housing costs, high interest rates, and difficulty accessing adequate financing. He identified five solutions to overcome these obstacles, which can be summarized as follows:

• Increasing real estate investment in areas experiencing economic growth.
• Providing financial incentives and developing financing programs.
• Encouraging the private sector to provide housing support for employees.
• Directing transportation projects toward newly developed areas.
• Raising awareness among those in need of housing by specifying housing categories and sizes.

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Hani Al-Saadi: The shortage of affordable housing units

Hani Al-Saadi, a real estate broker and marketer, affirmed that Saudi Arabia’s Vision 2030 aims to develop the Saudi economy and diversify sources of income, and among the sectors undergoing a radical transformation is the housing sector, The Vision plays a key role in transforming the housing sector into a fully integrated industry, with a focus on raising the homeownership rate among Saudis to 70%.

Al-Saadi explained that the direct impact of Vision 2030 on the housing sector is evident in the significant progress made in regulating the real estate market, expanding access to financing, and the streamlining of regulatory frameworks. These steps have contributed to raising the rate of homeownership among families, reflecting a qualitative shift in the housing sector. This has restored confidence in various housing programs through clarity and transparency in defining objectives and mechanisms, speed and efficiency in streamlining procedures and improving service delivery, and fairness and equality in ensuring equal opportunities for all segments of society.

Al-Saadi said: "The private sector can contribute to raising the homeownership rate by enacting clear regulations and laws that govern construction and investment in housing projects, partnering with the government to implement housing initiatives and programs, and by encouraging mortgage financing through the provision and development of low-interest mortgage programs for citizens to encourage them to purchase homes. This would create an environment attractive to both local and foreign investment and increase homeownership rates.

Regarding the obstacles that hinder and limit homeownership rates, Al-Saadi noted that rising prices place a burden on citizens wishing to become homeowners, and that the market suffers from a shortage of affordable housing units, particularly in some major cities. Additionally, some citizens face difficulties in obtaining housing financing.

Al-Saadi called for the implementation of programs that ensure stability and prevent excessive price inflation, as well as the promotion of collective housing through increased investment in social housing programs to provide affordable housing units for low- and middle-income groups.

(@HaniSaadiKW)

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Khalid Al-Omroud: The Vision has achieved its targets and provided solutions

Khalid Al-Omroud, Chairman of the Board of Directors of Azamt Management Consulting and Business Development, affirmed that the various initiatives and projects spearheaded by the Kingdom’s Vision 2030, aim to bring about a radical transformation in the housing sector to fulfill Saudi families” aspiration to own suitable housing and to support sustainable economic development, thereby contributing to a better quality of life and stimulating economic growth and sustainable development in the Kingdom.

Al-Omroud praised the achievements made by the Vision in just a few years, attaining high rankings according to global indicators under the leadership of the inspiring His Royal Highness Crown Prince Mohammed bin Salman, Their Excellencies the ministers, and the creative teams who have written the most inspiring success stories despite the challenges the world is facing.

Al-Omroud noted that the Vision has played a vital role in transforming the housing sector in the Kingdom of Saudi Arabia through several key pillars:

• Homeownership: One of the most important goals of Vision 2030 is to increase the rate of homeownership among citizens. The Vision aims to raise the homeownership rate to 70% by 2030, reflecting a strong focus on improving the social and economic stability of individuals.
• Stimulating the Private Sector: Encouraging private investment in the housing sector by offering incentives to developers and investors, as well as streamlining procedures and regulations to enable the private sector to contribute more effectively to the provision of housing units.
• Affordable Housing Programs: Developing initiatives such as the “Sakani" program, which aims to provide affordable housing solutions for citizens. Providing financial support and affordable loans to middle- and low-income families.
• Infrastructure Development: Improving housing-related infrastructure—such as roads, public utilities, and services—to enhance quality of life.
• Use of Technology: Adopting modern technologies in the construction of housing units to increase efficiency and reduce costs, as well as in property management and housing services to improve the experience of beneficiaries.
• Sustainability and the Environment: Encouraging the construction of sustainable and environmentally friendly housing to reduce the environmental impact of the housing sector and promote environmental sustainability.
• Development of the Legislative and Regulatory Framework: This is achieved by improving transparency and trust among investors, financing entities, and buyers, as well as by facilitating and streamlining procedures, which have contributed to enhancing the sector’s growth and making it more attractive to investors, developers, and beneficiaries.
• Development of integrated communities: Through new and attractive housing projects that include the development of infrastructure and essential services such as schools, health centers, and recreational areas, thereby enhancing residents" quality of life, serving as a draw to improve beneficiaries" experience, and contributing to an increase in homeownership rates.

Al-Omroud said, "Vision 2030 has had direct impacts and provided housing solutions that have brought about tangible, dynamic changes to the housing sector in the Kingdom of Saudi Arabia. The most notable of these tangible impacts can be summarized in the following points:

• Increase in the number of available homes: Thanks to government incentives and facilities, as well as initiatives empowering the private sector to increase supply in the housing market, which has helped narrow the gap between supply and demand.
• Improved ability to own homes: Through subsidized and affordable financing programs, such as those offered by the Real Estate Development Fund and the Sakani Program, it has become easier for citizens to own homes, which has helped increase the homeownership rate.
• Lower real estate prices: Competition resulting from increased supply has adjusted market prices, allowing broader segments of society to access a wider variety of housing options.
• Streamlining Construction and Permitting Procedures: Regulatory reforms and procedural simplifications have reduced the time and cost of construction, enabling projects to be delivered more quickly.
• Investment in technology and innovation: Investments in new technologies to build homes more efficiently and sustainably, supporting environmental conservation efforts and reducing long-term costs.

Al-Omroud stated that since the launch of the Kingdom’s Vision 2030, our confidence lies more in our hopes than in our fears, because our leader is an inspiration and the projects are exceptional (we are living them and seeing them), and we are reaping their benefits, praise be to God. and we are moving forward to achieve even more in all sectors with confident strides, full of pride and pride, highlighting the effective role the private sector can play in increasing homeownership rates by developing integrated communities—specifically, new and attractive residential projects that include the development of infrastructure and essential services such as schools, health centers, and recreational areas, which enhances residents" quality of life, serves as an attraction to improve the beneficiaries" experience, and contributes to raising homeownership rates.

Al-Omroud identified the obstacles limiting homeownership rates, summarizing them as the high cost of real estate, limited income coupled with a lack of suitable financing options, and strict mortgage eligibility requirements—all of which act as barriers preventing many families from obtaining suitable housing, explaining that the proposed solutions are evident today in the objectives of Saudi Vision 2030, which include:

1. Providing diverse and accessible financing solutions.
2. Increasing real estate options and encouraging investment.
3. Improving infrastructure and developing attractive residential environments.
4. Streamlining procedures and improving laws and regulations.
5. A variety of government support programs

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Dr. Fawaz Al-Za’bari: Financial support and incentives have boosted citizens" confidence

Dr. Fawaz Al-Za’bari, a professor at the College of Engineering at Najran University, affirmed that Vision 2030 directly targeted the housing sector through the launch of programs such as the "Sakani" program, which aims to increase the percentage of citizens who own homes. This was achieved by facilitating access to residential villas and providing land at subsidized prices. These steps have contributed to increasing homeownership rates and improving citizens" quality of life.

Al-Za’bari attributed the restoration of confidence in housing programs to transparency, continuous monitoring, and the provision of periodic reports detailing the progress made in housing programs, and the provision of mechanisms for cooperation between the public and private sectors. Furthermore, financial incentives and ongoing government support have bolstered citizens" confidence in the state’s commitment to improving the housing sector.

Al-Za’bari said: "The private sector can contribute by investing in residential construction and real estate development projects. Cooperation with the government on infrastructure projects can reduce construction costs and allow for the provision of affordable housing units. The private sector can also provide innovative financing solutions that help citizens purchase homes on favorable terms.

He noted that among the most significant obstacles to homeownership are the high costs of construction and land in urban areas, as well as financing challenges for individuals, He explained that appropriate solutions may include providing government subsidies for land and construction costs, strengthening public-private partnerships, and offering incentives to developers to build affordable housing units. Furthermore, mortgage financing mechanisms could be improved to facilitate access to housing loans.

@Falzabari

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The dream of owning a home for life is no longer just a dream

Khalid Al-Humaid

The Kingdom’s Vision 2030 has brought about a qualitative leap and an unprecedented transformation in the development of the housing sector by setting strategic and developmental goals to facilitate home ownership for citizens, It has worked to create a variety of housing products and programs, reduce the waiting period for obtaining a home, and by providing subsidized and affordable financing solutions that meet the needs of various segments of society. This has undoubtedly restored confidence in housing programs, as the percentage of households owning their own homes has risen to approximately 63% percent, We have also observed an increase in the housing supply through the participation of the private sector, which serves as a key partner in economic and development initiatives, contributing to the provision of numerous housing projects, product diversity, and an increase in homeownership rates, Thus, families’ dream of owning a home for life is no longer just a dream but has become a reality, by the grace of God and thanks to the Kingdom’s Vision 2030, which is moving forward with confident steps and insightful vision.

Although the housing sector is making significant efforts to overcome difficulties and facilitate homeownership, there are still some obstacles that have limited this progress. Perhaps the most prominent obstacle limiting homeownership rates is “high interest rates,” which have significantly impacted individuals’ willingness to seek mortgage financing. Therefore, the most appropriate solution may be to provide suitable low-interest financing options or to offer affordable housing products. Furthermore, the rise in land and real estate prices, particularly in major cities, have led to a decline in demand. Therefore, it is essential to monitor the real estate market to regulate prices, thereby encouraging individuals to pursue homeownership.

General Manager of Ma’alim Al-Maskan Real Estate Investments