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Saudi residential property market value to hit SAR1 trillion

Saudi Ministry of Housing wanted to accelerate the residential properties’ growth through a partnership with the private sector

The value of investments in Saudi Arabia’s residential real estate market is expected to reach SAR 1 trillion over the next ten years, reports Saudi-based Al-Hayat citing experts.

Experts in real estate say they have built their expectations on the growing demand for housing in Saudi Arabia, amounting to 200,000 housing units per year.

They stress the importance of improving the relationship between the Ministry of Housing and real estate developers for its advantages, particularly providing citizens with housing that is affordable and accessible to everyone.

Abdullah Al-Ahmari, head of the Real Estate Evaluation Committee at the Jeddah Chamber of Commerce and Industry (JCCI), says, “The Saudi Ministry of Housing wanted to accelerate the residential properties’ growth through a partnership with the private sector (real estate developers), which will lead to providing citizens registered in the Ministry of Housing’s programmes with houses in a short time.”

He adds that, currently, the Ministry of Housing’s programme lists have 790,000 citizens and points out that Saudi Arabia will need up to two million units over the next ten years at a rate of 200,000 units per year.

Abdullah Al-Maghlouth, a member of the national committee for contractors at the Council of Saudi Chambers (CSC), says the partnership between the Ministry of Housing and real estate developers will dramatically curb property and land prices.

He estimated that, in the event of such a partnership, real estate prices would decline by 15 to 30 per cent.