Wafi introduces new mechanisms to facilitate developers' payment of project's land value

Wafi logo

The Off-Plan Sale or Rent Program (Wafi) announced the launch of new mechanisms to enable real estate developers to pay the value of the projects' land from the escrow account, with the aim of facilitating the financing of real estate developers' business, in order to contribute to enhancing the real estate supply.

The new mechanisms are aimed to maintain market balance in accordance with the objectives of the Housing Program (one of the programs of Vision 2030), in order to increase the rate of housing ownership by Saudi families to 70% by 2030, Saudi Press Agency reported.

Wafi's Secretary-General Nayef Al-Sharif said that the specific mechanisms to enable developers to pay the value of the project's land come in two payments, as follows:

The first payment: When the collection rate reaches 30%, and its amount does not exceed the amount that can be used by the collector for non-construction costs or the percentage of the value of the land from the first payment, or whichever is less.

The second payment: When the collection rate reaches 75% and its available amount does not exceed the amount that can be used by the collector for non-construction costs or the percentage of the value of the land from the first payment, or whichever is less, deducting the first payment.