- The Housing Sector in the kingdom of Saudi Arabia, is growing at pace boosted by the commitment of The Ministry of Housing to deliver 1.5 million new units by 2030 which would result in the increase in home ownership to 60% by 2020 and 70% by 2030
- This demand is driven by a large, young and growing national population with an annual expected projected growth of 1.5% compared to 0.9% globally
- The housing demand is distributed across three major cities, Riyadh, Dammam and Jeddah with 345K units each and a minimum size per unit required at 125 m2 and a maximum selling price per unit at $200K
- The housing construction industry in KSA is moving from traditional to technology based delivery methods (e.g., 2D, 2.5D and 3D building systems). By 2020, 340K units will be built through modern construction technologies
- The investor can tap into the KSA market through 4 engagement models: pure contracting, public private partnership, 100% foreign ownership, and private to private partnership.
- The Ministry of Housing offers the following incentives: Provide high floor area ratio (FAR), Off-plan sales (if developer reaches 30% off-plan sales), Interest free loans (up to 25%), and infrastructure financing support (50% of infrastructure cost)
Across the Kingdom
To be determined
Model: Public Private Partnership:
- The developer obtains CR & license from SAGIA
- The developer registers for Off-Plan Sales (WAFI) Scheme
- Ministry of Housing informs registered developer of RFPs
- The developer submits proposal
- The developer to obtain 30% commitment from beneficiaries to start construction
- Ministry of housing provides incentives
Contact Our Ministry of Housing Expert
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