RIYADH: The Saudi government’s latest announcements in the real estate sector, including giving more than 53,000 new homes in Riyadh and unleashing the ban on ownership by non-Saudis in Makkah and Madinah, will help to renovate the sector and reach the Kingdom’s Vision 2030 home ownerships goals, as per the industry figure.
“The announcement of the allocation of 20 million square meters of land in the northern Riyadh suburb of Al-Jawan, effectively trebling the size of this neighborhood, to housing developments will certainly aid the government’s homeownership targets,” Faisal Durrani, head of Middle East research at real estate consultancy firm Knight Frank, told Arab News.
He further said that the announcement by Crown Prince Mohammed bin Salman “follows the December announcement by Roshn to develop 30,000 residential units in Riyadh — 4,000 in the first phase — as part of a national program to deliver 1 million new homes by 2030.” The move is also in accordance with the city’s aim to be one of the 10 largest economic cities in the world and to raise its population from 15 to 20 million by 2030.
The help for the housing area will also assist the public authority with accomplishing one of its center Vision 2030 objectives to arrive at 70% homeownership by the end of the decade, up from 47% four years prior and around 60% as of now.
The choice toward the end of last week to permit organizations registered on the Saudi Stock Exchange to claim properties in Makkah and Madinah was additionally seen as a significant move by the government to urge foreign investment and to allow non-Saudi investors ownership in the prime markets.
“Opening ownership in Makkah and Madinah to international companies is a clear indication of the direction of travel of the Saudi economy and is perfectly aligned with Vision 2030,” Durrani said, adding: “The landmark change is likely to pave the way for a boost in demand for commercial real estate over the medium to long-term, as businesses are drawn to the emerging economic opportunities.” Such moves by the government are likely to be a catalyst for a post-pandemic rebound in the Kingdom’s real estate sector, which are already up 25 percent year-on-year (Y-o-Y) in Riyadh during the first quarter of this year, and 34 percent Y-o-Y in Jeddah and 11 percent Y-o-Y in the Dammam Metropolitan Area.