Youssef Al-Shallash, Chairman of the Board of Directors of Dar Al-Arkan, one of Saudi Arabia’s largest real estate development companies, confirmed that they are discussing with the Ministry of Housing a number of current projects and future plans, as well as removing obstacles and creating an environment that encourages investment in this sector.” Al-Shallash called on the government to make a large amount of land available on the market and to streamline the procedures for acquiring it, reducing bureaucratic red tape.

Al-Shallash revealed—according to statistics—that 60% of Saudi citizens live in rented housing units, while Minister of Housing Majid Al-Hogail has stated on previous occasions that the Saudi market needs 1.5 million housing units to meet demand, and that the current market supply meets only 25% of that demand; furthermore, there are no housing options suitable for those with monthly incomes below 11,000 riyals.

Al-Shallash identified the problems in the Saudi real estate market as rising rental prices, speculation on undeveloped land, the lengthy process of obtaining permits, and the lack of financial capacity among most of the segments where demand is concentrated. He said that the ministry is in the process of establishing a center to approve permits for developers. Permits typically take years to obtain, and this is one of the main obstacles; the fact that the ministry is facilitating the entry of projects into the market is, in itself, a solution to the problem.”

Al-Shallash commended the Ministry of Housing’s efforts, its revised strategic direction, and its pursuit of housing solutions through collaboration with real estate developers, noting that these measures will soon have a tangible impact on the real estate market.