Latest news with #HousingProgram
Trade Arabia
22-05-2025
- Business
- Trade Arabia
Saudi NHC launches premium real estate projects in Tabuk
Saudi National Housing Company (NHC) has announced the signing of key agreements with leading developers for the launch of Tabuk Hills as well as the second phase of Tabuk Valley, the newest urban destinations in the Kingdom of Saudi Arabia. It was launched by Tabuk Region Governor Prince Fahd bin Sultan bin Abdulaziz in the presence of senior Saudi officials. The event, held in the presence of Deputy Governor Prince Khalid bin Saud bin Abdullah bin Faisal bin Abdulaziz and NHC Chief Executive Mohammed Al Buty, witnessed the signing of six real-estate development agreements for several projects in the new destinations, said the company in a statement. The step embodies the partnership between the public and private sectors in supporting the goals of the Housing Program, one of the programs of Saudi Vision 2030, which aims to raise the rate of home ownership to 70%, it added. -TradeArabia News Service
Leaders
16-05-2025
- Business
- Leaders
NHC Signs MoU with K. Hovnanian ME to Develop Urban Projects
The National Housing Company (NHC) has entered into a memorandum of understanding (MoU) with K. Hovnanian ME to jointly develop a range of residential and commercial projects across NHC's urban developments. The agreement was signed during the Saudi-US Investment Forum in Riyadh. The Memorandum of Understanding was signed by NHC CEO Mohammed bin Saleh Albuty and Tyler Lewis of K. Hovnanian ME. Additionally, this partnership stems from an official visit to the United States by Minister of Municipal and Rural Affairs and Housing Majed Al-Hogail, highlighting the strengthening investment relations and growing collaboration between the two countries. The MoU is designed to strengthen cooperation, attract foreign investment, and ensure the delivery of high-quality, internationally benchmarked real estate developments. It also supports the objectives of the Housing Program under Saudi Vision 2030 by offering integrated housing solutions aimed at enhancing residents' quality of life. Hovnanian, one of the largest real estate developers in the United States, brings extensive experience in creating residential communities. Related Topics : KSrelief Supervisor-General Meets UNHCR Deputy High Commissioner NHC Establishes Innovative Tech Firm to Transform Real Estate Saudi Health Minister Signs MoU with Chinese Counterpart to Enhance Collaboration Global Logistics Forum 2024 in Riyadh: Reshaping Global Trade Map Short link : Post Views: 13 Related Stories
Arab News
03-05-2025
- Business
- Arab News
Crown prince fuels housing vision with SR1bn support
In a historic initiative to promote homeownership among Saudi citizens, especially those with the greatest need and lowest incomes, Crown Prince Mohammed bin Salman has donated SR1 billion ($266.6 million) to the National Development Housing Foundation, known as Sakan, via the Jood Eskan platform. With a vision rooted in generosity and national pride, the crown prince has mandated that all housing projects funded by this donation be completed within 12 months, using national companies for implementation. He has also emphasized transparency and accountability through monthly progress reports, showcasing his commitment to swiftly delivering housing to deserving families. The initiative aims to uplift thousands of citizens, ensuring them a dignified life and reinforcing social stability, while reflecting his broader dedication to sustainable development and inclusive growth in the Kingdom. The donation will significantly strengthen Sakan, accelerating the delivery of homes to eligible citizens, building on the 47,000 homes already provided. The crown prince's SR1 billion donation underscores a commitment to expanding homeownership and ensuring greater access to affordable housing for Saudi families It will also support the Saudi government's housing efforts, advancing homeownership opportunities for citizens and helping to meet the ambitious goal of 70 percent homeownership by 2030. Before the Housing Program launched in 2018, Saudi families waited up to 15 years for housing support. Now, thanks to government initiatives, homeownership can be secured instantly, transforming access to housing and improving quality of life. By improving access to financial support, simplifying procedures and digitizing documentation, homeownership surged from 47 percent to more than 65.4 percent by 2024, surpassing the interim target set within Saudi Arabia's Vision 2030. This achievement reflects the success of government efforts, particularly through programs such as Sakani and the Real Estate Development Fund, in providing housing and financing solutions for citizens. This donation aligns with the crown prince's recent directive to stabilize the real estate market, directly supporting the government's strategy to increase housing supply and regulate property prices for greater affordability. The crown prince's SR1 billion donation underscores a commitment to expanding homeownership and ensuring greater access to affordable housing for Saudi families. By reinforcing efforts to boost housing supply and stabilize real estate prices, the initiative paves the way for a sustainable, inclusive and thriving housing sector for future generations. The crown prince's donation reflects his dedication to ensuring citizens enjoy dignified lives. It stands as a testament to his deep commitment to the housing sector, particularly initiatives that support deserving families, foster social stability and promote long-term development. • Talat Zaki Hafiz is an economist and financial analyst. X: @TalatHafiz
Arab News
26-02-2025
- Business
- Arab News
Saudi residential transactions up 35% over 5 years: Knight Frank report
RIYADH: Residential transaction values in Saudi Arabia surged 35 percent over the past 5 years to reach SR164.8 billion ($43.94 billion), according to a report from Knight Frank. The findings showed that these deals, which accounted for 61.5 percent of all real estate agreements by total value, registered a 38 percent increase in the number of sales to just under 202,661 during the same period. This falls in line with the Kingdom's Vision 2030 goal to reach a 70 percent homeownership rate by 2030. It also aligns well with Saudi Arabia's commitment to supporting access to affordable, quality housing for all citizens. 'Undoubtedly, the next big area of focus for developers will be on creating new and additional sources of demand, which may soon materialize in the much-anticipated change in foreign ownership laws,' Partner and Head of Research in the Middle East and North Africa region Faisal Durrani said. 'We continue to march toward an eventual and much-anticipated easing in international ownership laws in the Kingdom. The recent change in investor rules allowing international investors to access the property markets in the Holy Cities through listed companies, announced in January, will help to begin addressing the pent-up demand from international investors hungry to access real estate markets in the Kingdom's Holy Cities,' he added. The study further revealed that several factors have contributed to the growth of residential real estate transactions in Saudi Arabia in recent years. In 2023, over 96,000 families benefited from the Kingdom's Housing Program, which provides access to affordable home financing options. By the first half of 2024, another 55,000 families had gained from this initiative. The release further revealed that despite record-high prices in cities like Riyadh, 45 percent of affluent Saudis are still eager to buy a home this year. It also indicated that while the domestic homeownership rate is nearing the government's 70 percent target for 2030, rising borrowing costs and escalating house prices are dampening demand. Knight Frank's survey, conducted with YouGov and covering 1,037 households in the Kingdom — including 100 Saudi-based expats — highlighted a reduced interest in property purchases among first-time and current homeowners. 'What we are experiencing now is an organic slowing in demand as the 70 percent home ownership target approaches and as residential values start to peak in the current cycle. The rampant house price growth across the country, too, is curbing the appetite to purchase,' Regional Partner in Strategy and Consulting in Saudi Arabia at Knight Frank, Harmen de Jong, said. 'This has been evidenced by our survey results, as among our respondents, just 33 percent plan to buy a home or upgrade their accommodation in 2025, which is down on the 40 percent figure we recorded in 2023, which underscores the success the authorities have had in boosting home ownership levels,' he added. The analysis unveiled that first-time buyers' demand for home purchases has decreased to 29 percent, down from 40 percent in 2023 to 84 percent in 2022. The property firm highlighted that the government's initiatives to increase homeownership among Saudi nationals, which reached 63.7 percent by the end of 2023, are now bringing the target of 70 percent by 2030 within close reach. In Riyadh, apartment prices have increased by 75 percent over the past five years, while villa prices have risen by 39 percent during the same timeframe. The high-interest-rate environment, with current levels at 5 percent compared to 1 percent in 2021, is further contributing to the growing factors reducing demand.
Zawya
22-02-2025
- Business
- Zawya
SRC completes pricing of its first $2bln international sukuk offering
London: The Saudi Real Estate Refinance Company (SRC), a PIF Company, has successfully completed the pricing of its first government-guaranteed international Sukuk, valued at USD 2 billion. The issuance, structured in two tranches with maturities of three and ten years, was oversubscribed 6 times, reflecting strong demand from more than 300 institutional investors. This Sukuk is part of SRC's USD 5 billion international Sukuk program that was listed on the London Stock Exchange (LSE) and is backed by strong credit ratings, reinforcing the company's position as a key player in the global housing finance market. The issuance will be listed on the International Securities Market (ISM) of the London Stock Exchange (LSE), further enhancing market liquidity and supporting Saudi Arabia's mortgage finance ecosystem. H.E. Majid bin Abdullah Al-Hogail, Minister of Municipalities and Housing and Chairman of the Board of the SRC, said: 'The successful listing of the international Sukuk Programme at the London Stock Exchange (LSE) reflects the unwavering support of our wise leadership and reinforces Saudi Arabia's housing finance ecosystem, while providing innovative financing solutions for citizens. This marks a significant milestone in integrating the Saudi economy with global markets, attracting foreign direct investment, enhancing liquidity, and developing the secondary mortgage market in Saudi Arabia.' H.E. Al-Hogail added: 'Saudi Arabia aims to expand the mortgage finance sector by SAR 500 billion by 2030, reaching SAR 1.3 trillion. The Kingdom's mortgage market was approximately SAR 800 billion in 2024, up from SAR 200 billion in 2018. These financings now account for 23% of total bank assets.' H.E. Al-Hogail highlighted that this growth is driven by the Kingdom's mega projects and the objectives of Vision 2030, which set a target homeownership rate of 70% for Saudi families by the end of the decade. By the end of 2023, homeownership reached 63.7%, surpassing the 63% target. 'The new issuance supports the sustainability of the housing sector and contributes to achieving the objectives of the Housing Program under Saudi Vision 2030 by providing more efficient funding channels,' he concluded. Majid Al-Abduljabbar, CEO of SRC, emphasized that the issuance reflects global market confidence in the Saudi economy and strengthens the diversification of funding sources. 'The listing of the Sukuk Programme on the LSE not only strengthens SRC's global presence and strategy to attract a diverse base of international investors, but also solidifies the company's position as a key player in the mortgage finance market, paving the way for new strategic partnerships and high-quality international investments.' Al-Abduljabbar said that the successful listing of the international Sukuk also reflects SRC's commitment to providing innovative financing solutions and accelerating the growth of Saudi Arabia's housing sector, contributing to the objectives of the Housing Program and the Financial Sector Development Program. SRC holds strong credit ratings from leading rating agencies, including Fitch ('A+' – Stable), S&P ('A' – Positive), and Moody's ('A2' – Positive). These ratings reinforce the company's strong position in launching its first international Sukuk Programme, which aligns with global Sukuk market standards and best practices in Islamic finance. SRC was established by the Public Investment Fund (PIF) in 2017 to develop Saudi Arabia's real estate finance market. It operates under a license from the Saudi Central Bank (SAMA) to facilitate real estate refinancing. SRC plays a key role in achieving the objectives of the Housing Program under Saudi Vision 2030, which aims to increase homeownership rates among Saudi citizens. The company supports this goal by providing liquidity to lenders, enabling them to offer affordable housing finance to individuals. Additionally, SRC works closely with partners to strengthen Saudi Arabia's housing ecosystem.
