Latest news with #Al-Buty
Arab News
28-01-2025
- Business
- Arab News
Saudi Arabia's NHC to offer affordable homes 20% below market rates, CEO says
RIYADH: Saudi Arabia's state-owned developer NHC will price units 20 percent below market rates as part of its strategy to meet the surging demand for affordable housing, revealed its CEO. In an interview with Arab News on the sidelines of the fourth Real Estate Future Forum in Riyadh, Mohammed Bin Saleh Al-Buty stated that the company will offer more than 140,000 housing units in 2025, starting at SR375,000 ($99,979), 'which are very good prices, especially in Riyadh.' The company's goals align with Saudi Arabia's Vision 2030, which is seeking to address the rising housing demand driven by population growth and economic expansion. 'Most of the demand is in Riyadh, where we see the highest pressure on prices. However, we are also addressing demand in 17 cities nationwide, ensuring both affordability and quality,' Al-Buty said. He added: 'The focus we have is because the demand is real ... if there is demand, we have to focus on that. But we did not miss other cities as well. We are serving other cities.' This comes after the company launched NHC Innovation on the event's first day, a technology-driven subsidiary focused on delivering innovative real estate and municipal solutions while advancing new technologies. Al-Buty emphasized the importance of the development, saying: 'We became the largest real estate company and market leader, so we decided to spin off a subsidiary to drive innovation and enter a new era of providing AI services.' He added: 'We have more than 20 million clients in our database. The company was born big, and just in 2024, we had more than half a billion transactions. We also had over 3.5 billion visitors to the platform.' Al-Buty also highlighted NHC's efforts to proactively manage supply chain challenges by securing materials and contractors in advance. 'We work with both local and international suppliers to secure materials for the next two to three years. This helps us keep costs manageable despite the rising demand in the market,' he said. The CEO continued: 'That initiative was really great for our partners as well. If we succeed in securing those materials for our project at the current cost, I think we've done a great job, and we're even trying to acquire them at a lower cost.' He added: 'That's because the overall development in the country is driving prices a bit higher, so we're working to secure those materials on time and at the current cost.' NHC, which aims to supply 300,000 housing units by 2025, is expected to host over 1 million residents by 2030. That figure is projected to double to nearly 2 million in subsequent years. Al-Buty reiterated NHC's focus on delivering value to its clients. 'We are creating unique opportunities for ownership and investment while ensuring our housing solutions meet the market's needs.'
Arab News
27-01-2025
- Business
- Arab News
Saudi Arabia's National Housing Co. sees robust sales in 2025 amid lower interest rates
RIYADH: The CEO of National Housing Co. stated that lower interest rates in 2025 are expected to help the company exceed its 2024 achievements, with the reduced rates likely to boost sales. During a session titled 'Enhancing Quality of Life: The Role of Real Estate in Community Development' on the opening day of the Real Estate Future Forum in Riyadh, Mohammad Al-Buty highlighted that despite the challenges posed by higher interest rates in 2024, NHC successfully delivered high-quality products to meet market demand. This achievement aligns with NHC's ambition to become the leading real estate developer in the region, positioning itself at the forefront of the industry. It also supports the company's commitment to delivering 300,000 housing units by 2025 and 600,000 by 2030, addressing the diverse needs of all societal segments. 'We've doubled our sales in 2024, and with the expected lower interest rates in 2025, we anticipate an even greater positive impact on the real estate market,' Al-Buty said. 'Our goal now is to surpass what we achieved in 2024. We expect the reduction in interest rates to further boost sales." 'In 2023-2024, interest rates had an impact on mortgage demand for us,' he explained. 'While 2024 saw the highest interest rates, it also recorded the highest sales. We were able to navigate these challenges by offering high-quality products that could effectively accommodate the higher rates.' The CEO further emphasized that NHC does not focus on developing units for specific segments, but instead designs for entire communities, catering to all classes and segments. 'We develop based on market needs, using data to identify the desires and demands of our customers. We conduct thorough market studies,' Al-Buty explained. He also highlighted: 'Our pricing is highly competitive compared to neighboring countries for housing units.' During a separate panel discussion titled 'New Frontiers: Balance and Innovation in the Real Estate Landscape,' Qatar's Municipality Minister Abdullah Al-Attiya highlighted that the World Cup was already integrated into the country's Vision 2030, long before it was announced or hosted. 'The World Cup accelerated the execution of our plans, driving progress and resource allocation toward developing world-class infrastructure, ultimately positioning us as a global leader in infrastructure,' Al-Attiya explained. Also participating in the panel, Maldives Minister of Construction, Housing, and Infrastructure Abdulla Muththalib ddressed the significant challenges his country faces, noting that tackling environmental issues and providing essential services to the population come at a considerable cost. 'We need to build safer islands to address the environmental challenges we're facing, which will involve relocating people— an expensive process for us,' Muththalib said. 'Given that our GDP is under $10 billion per year, it requires a significant investment for a country like ours to protect the islands and build homes for those who need to relocate,' he added. The minister went on to explain that the government has launched an ambitious plan to reclaim a nearby lagoon near the capital city, covering an area of 1,100 hectares. 'We plan to build a city for over 200,000 people, focusing on relocating residents from smaller islands. We must do this because, with climate change, we know we can't sustain all these islands in the long term,' Muththalib said. Ahmed Dangiwa, minister for housing and urban development of Nigeria, who was also part of the panel, discussed the National Social Housing Fund currently being developed in Nigeria. The fund aims to ensure that vulnerable populations, those with no income, and the underprivileged can access affordable housing. 'When the fund is complete, Nigerians will be able to access funding for housing, with some homes priced low enough for even low-income individuals to afford,' Dangiwa explained. He further emphasized: 'Building materials will be sourced locally, reducing the need to import them, making the houses more affordable for the population.'
