Roshn, Saudi Arabia’s largest developer owned by the kingdom’s Public Investment Fund, and the National Housing Company have signed a preliminary agreement to jointly build residential communities to meet the growing demand for housing in the country.
The agreement forges a “lasting and pivotal relationship between the two companies … to build residential communities that meet the aspirations of families in Saudi Arabia,” according to one declaration on the NHC LinkedIn page.
Saudi Arabia is focusing on diversifying its economy as part of the Vision 2030 program which aims to develop local industries and reduce its dependence on hydrocarbons.
The PIF is a central part of Riyadh’s efforts to develop local industry, develop new non-oil sectors and boost employment in the kingdom. In January, the sovereign wealth fund unveiled a five-year strategy whereby it intends to double its assets to $ 1.07 trillion and invest a minimum of $ 40 billion per year in the kingdom’s economy until 2025.
The kingdom has set an ambitious goal of increasing home ownership among Saudis in the kingdom to 70% by 2030 as part of the Sakani program – a joint initiative between the Ministry of Housing and the Development Fund real estate – which supports and enables Saudi citizens to own their first home.
About 88,000 households benefited from the program during the first half of this year as the housing market continues to expand, Knight Frank said.
Apartment prices in Riyadh jumped 17% per year in the third quarter, while villa prices rose about 10%, fueled by a growing population, according to a Knight Frank. report.
Roshn, backed by PIF, is a lead developer and, who was created to make long-term investments across Saudi Arabia by developing residential communities, according to his website.
Roshn is currently working on housing projects in nine cities in four regions of Saudi Arabia: Mecca, Riyadh, the Eastern region and Asir. The company develops a total area of ââ150 million square meters in the four regions.
The PIF will play a central role in securing the necessary funds for the early stages of Roshn’s projects, in particular for infrastructure development, and by making land available, the developer said on its website.
Home buyers in Roshn communities will have access to mortgage programs offered by the Housing Department, the developer said.
Roshn’s mandate is to “provide a large-scale community development program to dramatically narrow the gap between market demand and supply,” according to the developer’s website.
Delivery of residential units in Riyadh and Jeddah continued at a steady pace in the third quarter of 2021 as the government made further progress to increase the percentage of Saudi families in home ownership, according to the global real estate consultancy JLL. report.
âThe housing projects announced by the NHC have been very successful, including the Rawa project north of Riyadh and Maylaa in Jeddah. A significant proportion of these programs include small to medium sized units for low and middle income families that qualify for the Sakani program, âJLL said in the report.
âGoing forward, government initiatives to make Riyadh the region’s business hub are expected to support residential demand (from Saudi nationals and expatriates). In comparison, demand for the residential sector in Jeddah is likely to continue to be driven by the local population, âthe report adds.
Updated: December 23, 2021, 10:01