The Minister of Municipalities and Housing, Majid Al-Hogail, stated that the city of Riyadh needs between 120,000 and 130,000 housing units annually due to the high demand for housing in the capital.
He explained that the real estate market currently meets only between 40% and 50% of this need, emphasizing that recent decisions regarding land allocation and achieving balance in the sector will help regulate prices and bring them in line with citizens’ purchasing power.
During a government press conference to review the achievements of Saudi Vision 2030, the minister noted that the National Housing Company, in partnership with local and foreign investors, will meet 38% of the market’s needs, and has been tasked with delivering 60,000 housing units in Riyadh, some of which are priced below 450,000 riyals before subsidies, making them affordable for middle-income citizens.
Al-Hogail emphasized that the path to homeownership in the Kingdom has become shorter and easier, noting that the Ministry aims to raise the homeownership rate from 66% in 2025 to 70% by 2030, as part of the National Vision’s goals.
In a move aimed at boosting confidence in the rental market, the minister revealed that work is underway on a new system to regulate the relationship between landlords and tenants, explaining that it will help protect rights, support investment, and enhance the diversity of residential and commercial options in the rental market.
Regarding fees for undeveloped land, the minister explained that the new system will be issued very soon, before the end of the 60-day deadline, noting its role in stimulating urban development and increasing the supply of developed land.
Al-Hogail highlighted the real estate sector’s growth from 170 billion riyals previously to more than 850 billion riyals in 2024, explaining that the sector now accounts for 14% of gross domestic product, which is an indicator of the accelerating pace of real estate development in the Kingdom.
Regarding urban development, the minister explained that the ministry has redefined Saudi cities to be balanced, green, and smart environments that meet the needs of residents, noting that more than six Saudi cities have been ranked as smart cities.
He added that the ministry aims to generate 25 billion riyals in revenue from the municipal sector by 2025, which will directly improve the quality of municipal services provided to citizens and residents.
