<In a new strategic move aimed at stimulating financial stability and supporting the housing sector, Real Estate Development Fund announced the launch of Early Repayment Program, which offers a discount of up to 24% for direct lending beneficiaries before 2017. With this initiative, the Fund is opening new doors for existing owners, while enhancing the ability of real estate developers to develop new projects, and promises to radically change the Saudi real estate market. What impact will this program have on the real estate market, real estate companies, developers, prices, and ownership rates?

The impact of the program on the Saudi real estate sector:

The announcement by the Real Estate Development Fund (REF) of the early repayment program, which comes as a golden opportunity for a large number of direct lending beneficiaries, especially for those who obtained mortgages before 2017. The program offers beneficiaries a discount of up to 24% if they repay the mortgage loan early, whether in full or in part. This discount only applies to those who have paid their obligations on time, encouraging them to settle their debts and improve their credit records.

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1. The impact of the program on real estate developers and real estate companies: Real estate companies seek to accelerate sales and expand into new projects, especially with the promotion of an early payment culture. If beneficiaries take advantage of these discounts, additional liquidity is expected to flow into the real estate market, boosting the activity of developers and motivating them to complete their current projects or even launch new ones. This liquidity may improve the competitiveness of real estate development companies, especially with the continuous growth of demand for residential units.

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2. Impact on real estate prices: The Saudi real estate market is expected to witness price changes as a result of the early repayment incentive. This could lead to an acceleration of buying and selling, which could raise the demand for residential units and positively affect prices. If these processes continue intensively, prices may increase gradually, especially in major cities and areas with significant urban development.

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3. Impact on the real estate ownership rate: This program is an important step towards achieving the goals of Saudi Vision 2030 in terms of increasing the percentage of real estate ownership among citizens. By providing the opportunity for early repayment with a discount, beneficiaries will have the ability to settle their debts faster, providing them with more financial stability and enhancing their chances of owning their own home. This, in turn, will contribute to increasing the rate of real estate ownership in the Kingdom.

4. Impact on real estate supply: Increased demand for early repayment may lead to changes in the real estate supply, as it could increase demand for new mortgages, incentivizing developers to provide more housing units. This may cause new supply in the market, contributing to meeting the needs of citizens and spurring growth in the real estate sector.

Accelerate money circulation

<It seems that the early repayment program launched by the Real Estate Development Fund will have wide-ranging effects on the Saudi real estate sector, both in terms of accelerating the turnover of funds, and through its impact on prices and the rate of real estate ownership. With the commitment of beneficiaries to the program, the Saudi real estate market may witness a quantum leap towards further growth and expansion, enhancing its sustainability and ensuring innovative housing solutions for future generations.

With the commitment of beneficiaries to the program, the Saudi real estate market may witness a qualitative leap towards further growth and expansion.