Real estate ‘overpriced’, Kingdom grants ministry many land plots: Al-Hogail

Minister of Municipal, Rural Affairs and Housing, Majid Al-Hogail, said real estate is slightly overpriced at the present time. Accordingly, extensive land plots were needed in the highly-populated cities, namely Riyadh, Jeddah and Dammam.

During his speech at the Real Estate Future Forum, Al-Hogail reiterated that the Saudi leadership granted the ministry a large number of land plots, which will be delivered soon to citizens. The ministry seeks to ensure that nationals obtain high-quality homes within integrated residential complexes that fulfill their needs.

The Kingdom is in need of a lending hand from successful models in other countries and developers that are adept in building expansive residential districts. Further, the ministry will soon unveil names of new regional and global developers that will join forces with the Kingdom in this regard, he added.

Al-Hogail explained that these developers will not compete with local peers, as the Saudi market requires a high number of real estate development firms and diversified players to provide various services.

Elsewhere, some agreements were sealed with three Chinese companies during China’s President Xi Jinping recent visit to Riyadh last December.

Given the whopping mega projects that were launched under the Saudi Vision 2030, the capacity of existing contractors may not suffice market demand, the minister noted, pointing to the need to offer more expansive units.