Saudi Arabia needs to build 1.2 mln houses over next decade: PwC Middle East

Riyadh city

Saudi Arabia needs to build almost 1.2 million new housing units over the next decade to bring total to 4.96 million by 2030, PwC Middle East said.

In its recent “Transforming the Housing Sector in Saudi Arabia” report, PwC Middle East added that housing demand is expected to increase by 54% from 99,600 houses in 2021 to 153,000 houses by 2030 with an average of 124,000 houses over the period.

Saudi Arabia made remarkable progress in transforming its housing sector in the past decade. The government’s robust policies and initiatives, including the activation of numerous finance products, is propelling the sector forward, addressing the key challenges faced by the housing market, and making home ownership a possibility for new generations of Saudis.

The next stage of the housing program will focus on the most underprivileged segments of society, and on increasing the involvement of the private sector. The contribution of the private sector is essential in supporting the resilience and sustainability of the sector under different economic conditions.

The Sakani program increased significantly the supply of housing and many Saudi families achieved their ambition of home ownership. In 2020, the rate of home ownership in KSA reached 62% and will meet the target of 70% by 2030.

Real estate is a vital element of the KSA economy, contributing around 7% of gross domestic product (GDP). As the Saudi economy continues to diversify, the sector will become more influential - the goal is to increase the sector’s contribution to GDP to 10% by 2030, PwC Middle East added.