An article appearing in Arab News, in July, highlighted the Saudi National Housing Co’s significant progress in increasing homeownership among Saudi citizens. Since the beginning of 2023, the state-owned firm has delivered 17,700 houses, bringing the total to 25,000 units in various parts of the Kingdom.
VISION 2030'S HOUSING PROGRAM
The National Housing Co. is dedicated to accomplishing the goals of the housing programme for Vision 2030. This goal seeks to increase the rate of home ownership in Saudi Arabia from 60.6% in 2022 to 70% in 2030. According to a PwC Middle East report published in December 2022, Saudi Arabia's housing demand will rise by over 50% by 2030, reaching 153,000 homes. So the Kingdom must make consistent progress to accommodate the growing demand for housing.
ACCELERATING DELIVERY
To meet the increasing demand for housing, the National Housing Co. plans to build over 153,000 housing units across an area larger than 105 million sq. meters. The National Housing Co, aims to achieve this through the development of nine suburbs and five residential communities. The focus is on providing modern housing in spacious areas with greenery and integrated facilities. This way the new developments are long-lasting, adhering to sustainable standards.
SAUDI ARABIA'S REAL ESTATE SECTOR GROWTH
Saudi Arabia's real estate sector is experiencing rapid growth, with property prices rising due to limited supply. In Riyadh, the average apartment price increased by 17.3 percent year-on-year. But in Jeddah, Dammam, and Alkhobar, the average apartment prices dropped by varying percentages.
POSITIVE PERFORMANCES IN THE VILLA SEGMENT
In the villa segment, major cities in Saudi Arabia have seen positive performances in the first quarter of 2023. Average prices in Dammam, Jeddah, and Riyadh improved, reflecting a growth of 28.1 percent, 10.2 percent, and 6 percent, respectively.
In the first quarter, there were 30,213 residential transactions with a total value of SR22.8 billion ($9.58 billion).
A POSITIVE OUTLOOK WITH STRONG PROGRESS MADE
The Saudi National Housing Co. is playing a crucial role in accelerating housing delivery and increasing home ownership in Saudi Arabia. The Kingdom's residential real estate sector continues to grow, and despite some fluctuations in apartment prices, the outlook remains positive. The focus on sustainable development and meeting the rising demand for housing will now be instrumental in achieving the housing program goals of Saudi Vision 2030.
