It’s no secret that Saudi has been experiencing a housing deficit. The rate of homeownership in the kingdom was around 50% as of 2019, but with two-thirds of the population under the age of 35, the demand for housing is spiking.
The Housing Delivery Program, an initiative under Saudi Vision 2030, has stated that the aim is to achieve 70% homeownership within the Kingdom by 2030. In order to achieve this figure, it’s essential to quickly increase the supply of affordable housing.
The key to achieving this is the Sakani program. The initiative by the Ministry of Housing, along with the support of private industry, has been tasked with not only increasing the number of homes and the speed of construction but also improving the quality of housing and incorporating modern construction techniques.
The program provides Saudi nationals with access to residential plots, self-build plots, prefabricated housing, and units currently under construction. Its digital platforms provide details of the location, prices, and features of residential units available across the country, with users able to reserve a property on the platform.
As a result of the work by the Sakani program, homeownership during the first quarter of 2020 grew sharply among Saudi nationals, thanks in part to new developments and a variety of mortgage products that have been developed over the past few years. The aim is to get the rate of homeownership towards 60% by the end of this year.
It is expected that during 2020, despite difficulties posed by the Covid-19 pandemic, the Sakani program will assist 300,000 families through its many housing solutions. This includes 130,000 families moving into new homes, the exchange of 90,000 plots of residential land, and the completion of over 100,000 brand new homes in partnership with the country’s real estate developers.
So far in 2020, there are over 82 housing projects under construction across Saudi Arabia, which will result in over 130,000 affordable homes that range between $66,670 – $220,000.
A number of developments are underway in Riyadh, where 23,000 new units are under construction. The Murcia project, which is located in the north of Riyadh is gaining attention due to its strategic position next to major roads and in the suburb of Al-Jawan. The project has just launched Phase 2 called ‘Nasaj Town’ which will create 690 residential villas, with numerous public facilities, green spaces, and gardens.
The overall Murcia project will encompass 5 square km, providing 9,000 housing units that will accommodate around 50,000 people.
Exciting times ahead for Saudi’s residential construction sector.