• Thu. Feb 22nd, 2024

    Off-Plan Real Estate Market in Saudi Arabia: Bridging the Gap and Stimulating Growth

    Off-Plan Real Estate Market in Saudi Arabia: Bridging the Gap and Stimulating Growth

    The off-plan market in Saudi Arabia has emerged as a driving force behind the country’s vibrant and sustainable society, directly contributing to the goals set out in Saudi Vision 2030. As highlighted in a recent report by professional services company PwC, off-plan residential offerings have the potential to bridge the gap of 1.5 million housing units in the country, thereby fulfilling the objectives of the National Housing Programme.

    Saudi Arabia has set an ambitious target of increasing home ownership to 70%, up from 47% in 2016, as part of its Vision 2030 agenda. To achieve this, a significant leap in residential real estate supply is required, amounting to approximately 1.5 million housing units or 115,000 units annually. The government and entities like the Ministry of Municipal and Rural Affairs and Housing (MoMRAH) have introduced various innovative products and initiatives to support this objective.

    Off-plan properties play a crucial role in making housing more affordable for both local and foreign investors. This not only boosts the GDP of the kingdom but also stimulates the banking sector to create financial solutions that cater to different beneficiary segments. Moreover, the growth of the off-plan market stimulates the real estate brokerage market and encourages multiple purchases from investors.

    In recent years, the off-plan property sales in Saudi Arabia have witnessed remarkable growth, with a 52% increase in the first half of 2023 compared to the same period the previous year. This surge in sales has made it possible for a new generation of Saudis to realize their dream of owning their own property.

    To bridge the gap between supply and demand for residential housing, the kingdom has made significant changes to the local real estate market. These include the development of comprehensive and clear regulations, stronger partnerships between public and private sector players, and empowering developers to meet the country’s housing needs.

    In conclusion, the off-plan real estate market in Saudi Arabia not only serves as a catalyst for sustainable and affordable housing but also drives economic growth and stimulates various sectors. By embracing this sales model and implementing supportive measures, the kingdom is well on its way to achieving the goals outlined in Saudi Vision 2030.

    FAQ:

    1. What is the off-plan market in Saudi Arabia?
    – The off-plan market refers to the sale of properties or homes that are still under construction or in the planning phase.

    2. How does the off-plan market contribute to Saudi Vision 2030?
    – The off-plan market in Saudi Arabia helps fulfill the objectives of Saudi Vision 2030 by bridging the gap of 1.5 million housing units in the country and increasing home ownership to 70%.

    3. What is the target for home ownership in Saudi Arabia according to Vision 2030?
    – The target for home ownership in Saudi Arabia according to Vision 2030 is 70%, up from 47% in 2016.

    4. How much residential real estate supply is required to achieve the target?
    – Approximately 1.5 million housing units or 115,000 units annually are required to achieve the target of increased home ownership.

    5. What initiatives have been introduced by the government to support home ownership?
    – The government, along with the Ministry of Municipal and Rural Affairs and Housing (MoMRAH), has introduced various innovative products and initiatives to support the objective of increased home ownership.

    6. How does the off-plan market make housing more affordable?
    – Off-plan properties make housing more affordable by providing options for both local and foreign investors. This stimulates the banking sector to create financial solutions that cater to different beneficiary segments.

    7. What has been the growth in off-plan property sales in recent years?
    – In the first half of 2023, there has been a 52% increase in off-plan property sales compared to the same period the previous year in Saudi Arabia.

    Definitions:

    – Off-plan market: The sale of properties or homes that are still under construction or in the planning phase.
    – Saudi Vision 2030: A strategic plan for the future of Saudi Arabia, aiming to diversify its economy and achieve sustainable development.
    – GDP: Gross Domestic Product, the total value of goods and services produced in a country within a given time period.

    Related Links:
    Off-Plan Real Estate Market in Saudi Arabia
    Saudi Vision 2030