Saudi Housing Ministry has announced plans to boost the size of the mortgage market to SR502 billion by 2020 as part of its plan to provide housing finance to the Saudi citizens. The Ministry also aims to ensure the construction of 1.2 million housing units across the country before 2030.
Majed Al-Hogail, minister of housing, made the announcement on Wednesday while he was speaking at a major housing finance conference.
“We are working to facilitate access to housing finance so that Saudi citizens can own housing units. Vision 2030 calls for addressing housing issues and to provide enough affordable homes to satisfy demand,” Al-Hogail said.
“Saudi government is exerting all efforts to raise the household ownership ratio to 70 percent by 2030.” He added.
This move by the Housing Ministry is momentous as only 47% of Saudi citizens own homes. There is a shortage of 100,000 to 200,000 houses each year. Around third of the Saudi citizens are under the age of 15 and more than half of them are under 25, this means that there will be a need for a steady flow of affordable housing in the upcoming years.
The Real Estate Development Fund (REDF) will be transformed into a financial institution to support the housing sector, said Khalid Al-Amoudi, general supervisor of REDF.