Reviving Real Estate Market in Saudi Arabia
The government used to do its best to revive and promote the real estate market in Saudi Arabia. However, the ministry of housing has announced that it is planned to finish almost 95 residential project before the end of 2017; as a trial to promote the real estate market.
- According to the announcement, there are almost 15 project that will be built which is equivalent to almost 7200 residential unit,
- Also, it is planned that these residential units will be villas, apartments, and lands,
- Concerning what have been finished –as the ministry announced– there will be a residential program that includes almost 280,000 residential and financial items. The first phase will include 15653 product, the second phase will have 17923 product, while the third one will have 18799 product. Moreover, the fourth phase will include almost 20,585 residential and financial product and the fifth one will include more than 20,000 product which is divided into 7700 financial product and 7300 residential land. However, the ministry announced that this phase is a part of the residential program that includes almost 280,000 residential and financial product.
Purpose of Projects
- The aim of such financial program is to decrease the waiting period as possible to be five years maximum,
- For the long term plan, the state tries to increase the owing percentage to be almost 52%,
- The fund will include three types: self-construction (not by the state), buying constructed residential units, and buying unconstructed residential ones. This will help who need such residential units and also who wait the real estate fund.
To conclude, such support and fund aims to help whose income is less than 14,000 SAR – Saudi Arabian Riyal. However, whose income is more than that, they will be funded in a way that suits their monthly income and the number of their family members. All these efforts is only a trial to revive the saudian real estate market.