{"id":24184,"date":"2019-02-19T13:08:45","date_gmt":"2019-02-19T10:08:45","guid":{"rendered":"https:\/\/www.amlak.net.sa\/home\/?p=24184"},"modified":"2019-02-19T13:08:45","modified_gmt":"2019-02-19T10:08:45","slug":"%d9%82%d8%b1%d9%88%d8%b6-%d8%b9%d9%82%d8%a7%d8%b1%d9%8a-%d9%88-%d8%a7%d9%84%d8%b1%d9%87%d9%86-%d8%a7%d9%84%d8%b9%d9%82%d8%a7%d8%b1%d9%8a","status":"publish","type":"post","link":"https:\/\/amlak.net.sa\/en\/24184\/","title":{"rendered":"Real estate reports confirm the growth of the real estate sector in 2019 Mortgage market growth is expected to continue"},"content":{"rendered":"

The real estate index data showed a remarkable progress of the real estate sector in Saudi Arabia in terms of value and number Real estate deals<\/a>Accordingly, specialized reports predicted that the level of mortgages will increase by 21%, year-on-year, to reach about 368 billion riyals in 2019. The reports pointed out that the low growth of Commercial Real Estate<\/a> 5% (according to the General Authority for Statistics) will help lower the cost of rent, which will be an important factor in the expansion of retail stores.<\/p>\n\n\n\n

Residential programs drive growth<\/strong><\/h3>\n\n\n\n

 At the same time, a report predicted Jadwa Investment Company<\/a>The sector will continue to grow by 2.7%, after real estate activities recorded a remarkable growth of 2.2% in 2018, making the sector 9.4% percent of Saudi Arabia's non-oil GDP, due to the various housing options offered by the \u201cSakani\u201d program of the Ministry of Housing, which aims to provide a number of housing options for various citizens every month, amounting to 313 thousand housing units in 2018. The program also provided about 583 thousand housing units<\/a> since its launch in 2017. Jadwa report data indicated that the Ministry of Housing will continue this year to accelerate the pace of delivery of units to reach the target of 60 percent home ownership by 2020, according to the ministry's data, which announced earlier this year, 2019, a list of 200 thousand beneficiaries who are entitled to receive housing products in the \u201cResidential\u201d program.<\/p>\n\n\n\n

450 million riyals to finance housing projects<\/strong><\/h3>\n\n\n\n

Jadwa's report touches on the Ministry of Housing's plans to continue its approach of registering undeveloped land subject to white land fees, in implementation of the royal order issued in 2016. As of the end of 2018, the Ministry announced the issuance of payment orders for undeveloped land totaling 400 million square meters, and the total fees collected, amounting to SAR 450 million, were used to Financing housing projects<\/a> in a number of cities around the Kingdom. Overall, the report also predicted a better performance in home ownership due to the programs of the Ministry of Housing and the Real Estate Development Fund, and their achievement of the goals related to the Financial Sector Development Program (FSDP). In the construction sector, there was a decline of 3.3% in 2018, but the report indicated that this will not continue in 2019, as the growth in the real estate sector, which is expected in 2019, will contribute to this.<\/p>\n\n\n\n

The number of foreclosures is on the rise<\/strong><\/h3>\n\n\n\n

The report predicted an increase in the level of mortgages by 21%, and press reports estimated that the number of mortgage operations in Saudi Arabia through notaries during the past year rose to about 12,369 operations, an increase of 53% from 1438 AH. Experts believe that the financing market needs mechanisms and procedures to ensure the success of the real estate market in the Kingdom, including the mortgage system, and that banks and financing companies cannot provide loans to individuals or companies without the presence of precautionary guarantees that ensure the rights of both parties. Experts believe that the mortgage has become a necessary mechanism for several systems, including banks, owners of real estate companies and loan applicants, namely individuals and companies, and that the high percentage of mortgage operations is considered a healthy indicator and gives an opportunity to continue investing through the presence of the mortgage mechanism.<\/p>\n\n\n\n

About the Real Estate Growth Report<\/strong><\/h3>\n\n\n\n