The Saudi Ministry of Housing has set up a partnership with a private company in the kingdom to build a residential project composed of 462 units in east Riyadh with a total investment cost of 98 million riyals.
The project is considered the first of its kind in Saudi Arabia and it will become a model of cooperation between Saudi government and private sector on executing housing projects that aim at increasing Saudis’ home ownership.
The joint venture was set with Al Tahaluf Real Estate Company which is held by Hamad bin Mohammad bin Saedan Real Estate Group and the US-based K.Hovanian.
The project includes 426 duplex units and 36 villas varying in price between SAR530,000 and SAR590,000. All units are designed by Dutch-based designing house.
This initiative comes in the context of the ministry’s efforts to boost Saudis home ownership to reach 52% by 2020. The ministry has set various schemes to build about 1.5 million units during the coming 7 or 8 years.
The government took a number of procedures in this regard like issuing a tax on undeveloped lands, launching new home financing companies, and increasing the share of funding in loan purchases.