To effectively implement this housing plan, the National Housing Company (NHC) and the Real Estate General Authority (REGA) were established as the primary institutions driving this initiative.
The housing plan is divided into three phases:
1. First Phase (2018-2020): Focused on establishing a robust real estate ecosystem, increasing homeownership rates from 47% to 60% by 2020.
2. Second Phase (2020-2025): Aimed at significantly developing the private economy to meet diverse housing needs.
3. Third Phase (2025-2030): Targets making the private sector dominant in the housing market, achieving a 70% homeownership rate and ensuring sustainable real estate economic growth.
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Throughout these phases, the plan aims to supply a total of approximately 300,000 residential units. The first phase provides 46,000 units, while the second and third phases are expected to deliver 230,000 units, including 75,000 affordable housing units. Based on an average unit price of 500,000 Saudi Riyals, the total value of homes in the second and third phases is estimated at 115 billion Saudi Riyals, with affordable housing accounting for 35 billion Saudi Riyals.
Despite the clear national strategy and goals for homeownership rates, the market faces challenges. Mature real estate developers comprise only about 15% of the market, indicating substantial potential but also a shortage in developer supply.
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To drive the housing plan forward, NHC and REGA have adopted various strategies, including self-financed development projects and public-private partnership (PPP) models. Since 2018, NHC has developed hundreds of projects across Saudi Arabia, offering various types of residential constructions from suburban communities to multiple apartment complexes, predominantly featuring G+1 villas and low-rise apartments.
Moreover, state-owned enterprises and national corporations have actively participated in the construction of affordable housing, injecting significant momentum into the market. Despite global challenges such as the pandemic, geopolitical tensions, and inflation, Saudi Arabia's housing market continues to demonstrate enormous potential and sustainable growth dynamics.
As Vision 2030 progressively unfolds, Saudi Arabia's housing plan will continue to steer the direction of the real estate market, laying a solid foundation for sustainable national economic growth.
