Crown Prince grants 100 mln sqm of land in Riyadh, other cities: Al Hogail

Majed Al Hogail, Minister of Municipal and Rural Affairs and Housing

Majed Al Hogail, Minister of Municipal and Rural Affairs and Housing, said that Crown Prince Mohammed bin Salman ordered granting the residential sector 100 million square meters (sqm) of land in Riyadh and other cities, where land and real estate prices are rising.

The ministry and the Saudi Central Bank (SAMA) are working on mitigating the impact of higher interest rates on home, studying this issue to avoid its negative impacts, Al Hogail added.
 

Financing entities are keen to ensure no defaults. The delinquency rate under the financing programs offered by the ministry is less than 0.5%, among the lowest rates worldwide. The ministry is keen that residential loans do not exceed 40% of a beneficiary’s gross income.

The Public Investment Fund’s (PIF) wholly owned Saudi Real Estate Refinance Co. (SRC) supported market liquidity by purchasing portfolios of over SAR 25 billion in the last two years. “By the end of this year, we aim to buy additional portfolios worth SAR 45 billion to inject liquidity into the financing sector, and ensure products of up to 25-year term to facilitate loans for nationals,” the minister added.

The ministry aims to find solutions for all income brackets, including the neediest families. The Joodeskan platform served 8,000 households through offering units and supporting rents. Total contributions on the platform surpassed SAR 1 billion in 2022.

The housing program targets providing 365,000 homes until 2025 to fulfill the applications in the program, Al Hogail concluded.