JEDDAH- According to the IMF report, the housing program, one of the critical goals of the Kingdom’s Vision 2030, is on track to achieve its target well ahead of its schedule.
“The Vision 2030 is to raise homeownership rate from 47 percent in 2016 to 60 percent by 2020 and achieve 70 percent by 2030. The homeownership rate in 2020 was 62 percent.
Mortgage lending in Saudi Arabia continues to grow rapidly as government programs have supported housing demand and supply.
IMF reported the real estate developers had added around 344,000 new housing units in 2020 — an increase of 4.1 percent from 2019.
The IMF added that financing programs in the Kingdom have also increased. For example, the Sakani program contributed around 266,000 residential loans and free land packages in 2020.
Under this Sakani program, beneficiaries can obtain subsidized mortgage loans up to SR500,000. In addition, low-income households can get a free land parcel, or a mortgage guarantee and subsidized loan up to SR500,000.
According to the report, the new residential mortgage contracts increased by 84 percent in 2020 to reach SAR 136 billion, of which 96 percent were government-subsidized loans.
Government initiatives to enhance market regulation and efficiency have yielded results; the IMF noted that digital solutions for homebuyers have expedited eligibility checks and applications and allow easier access to financial products for homebuyers.
Source Saudi Gazette