Latest news with #NationalHousingCo
Arab News
3 days ago
- Business
- Arab News
Saudi banks' new-home lending jumps 24% to $9bn despite higher rates
RIYADH: Saudi banks extended SR34.1 billion ($9.1 billion) worth of fresh residential mortgages to individuals in the first four months of 2025, up 24.14 percent from the same period last year. Latest data from the Saudi Central Bank, also known as SAMA, shows that January led the surge with SR10.5 billion in new loans, followed by February at SR8.9 billion, March at SR8.4 billion and April at SR6.3 billion. The brisk start to the year pushed total outstanding retail real-estate lending to a record SR698.8 billion at the end of the first quarter, surpassing the SR223.4 billion on corporate property books and underscoring the dominance of households in the market. The momentum is tied to a range of Vision 2030 housing initiatives aimed at lifting Saudi home ownership to 70 percent by the end of the decade. Flagship programs such as Sakani, low-cost mortgage guarantees and the Saudi Real Estate Refinance Co.'s liquidity windows continue to funnel buyers into the market. Digital procurement partnerships are also speeding up delivery times. In February, Riyadh-based Penny Software teamed up with the National Housing Co. to automate sourcing for thousands of new units, a move expected to shave costs across the supply chain. The platform will function as a centralized procurement hub, directly connecting NHC contractors with vetted suppliers to streamline purchasing and enhance supply-chain oversight, tackling the bottlenecks that traditional procurement creates in housing projects. The acceleration has come in the face of the highest interest rate environment in nearly two decades. Knight Frank's February household survey showed demand is cooling. Only 29 percent of Saudi tenants now plan to buy a home in 2025, down from 40 percent a year earlier, with 'house prices being too high' ranking among the top three deterrents after already owning a property and having no reason to move. The consultancy pins the softer appetite on 'a high-interest-rate environment and rampant price growth, particularly in Riyadh,' which is nudging younger Saudis toward renting instead of owning. Official figures confirm that tight supply is still feeding through to valuations. The General Authority for Statistics said Saudi real estate prices rose 4.3 percent year on year in the first quarter, with residential values up 5.1 percent. Villa prices jumped 10.3 percent nationwide, while residential land — which carries the heaviest weight in the index — gained 5.3 percent. Knight Frank's survey also showed private buyers still eyeing flagship giga-projects such as NEOM and the Red Sea, although interest in the former has moderated as alternative master-planned communities come on stream. With oil receipts fueling fiscal space, policymakers are expected to keep subsidising mortgages and unlocking land banks, even as central-bank rates remain high through mid-2025.
Argaam
22-05-2025
- Business
- Argaam
Retal signs deal to develop residential units worth SAR 1.4B
Retal Urban Development Co. has signed a sub-development agreement with the National Housing Co. to develop 995 residential units in Al-Aziziyah district, Al-Khobar, at an estimated total value of SAR 1.418 billion, excluding taxes and fees, if any. The contract duration is 42 months from the commencement date of the agreement. The relevant financial impact will likely reflect on the company's results over the project execution term (2025-2028). There are no related parties involved in the agreement, the statement added.
Argaam
11-05-2025
- Business
- Argaam
NHC sells 16,000 units worth SAR 15B in 4M 2025: CEO
National Housing Co. (NHC) achieved record sales during the first four months of 2025, with a growth of 101% compared to the same period last year, said CEO Mohammed Al-Bati. In an interview with Al Arabiya TV, Al-Bati added that the company sold more than 16,000 housing units worth nearly SAR 15 billion in the four-month period, compared to around 8,000 units sold in the first four months of 2024. This growth was driven by the company's ability to accurately understand the market and consumer behavior, enabling it to offer competitive pricing and diversify its offerings to cover a wide range of customer segments, rather than focusing on a single product and audience, according to the top executive. Al-Bati also stated that NHC is the leading player in the real estate sector with a significant market share. 'Based on data from the Real Estate General Authority at the end of 2024, the company held a 31% share of all residential real estate transactions in Saudi Arabia. According to data from the Saudi Central Bank, the company's projects accounted for 21% of all residential real estate financing,' he said. The CEO further pointed out the huge opportunity available to real estate developers following a major injection of land in Riyadh and other cities, amid amendments to the white land tax law and other key regulations. This is in addition to the directives from Crown Prince Mohammed bin Salman, which have had a substantial impact in boosting real estate supply, helping stabilize housing prices in Riyadh.
Argaam
21-04-2025
- Business
- Argaam
Sumou wins SAR 680M contract to develop villas in Makkah Gate
Sumou Real Estate Co. was awarded on April 20 a SAR 680 million, VAT-exclusive contract by National Housing Co. (NHC) to develop residential units. In a statement to Tadawul, Sumou said it will develop more than 900 villas in the O2 Zone, Makkah Gate project in Makkah. Any future updates will be duly announced.
Argaam
27-01-2025
- Business
- Argaam
NHC signs deals worth nearly SAR 30B
National Housing Co. (NHC) signed a series of deals, agreements, and memorandums of understanding (MoUs) with government entities and private sector companies, with a total value of nearly SAR 30 billion. The announcements were made on the sidelines of the opening of the Real Estate Future Forum 2025. According to NHC, the agreements include an MoU with the Ministry of Industry and Mineral Resources. This agreement aims to enhance cooperation in supply chains and the industry links program, focusing on boosting local content and improving its efficiency within the real estate development sector. Another MoU was signed with King Abdulaziz City for Science and Technology (KACST) in collaboration with Al Seif Co. This partnership focuses on advancing construction and building development through the use of off-site construction technologies. Additionally, NHC signed agreements with nine real estate development companies: Retal Urban Development Co., Dar wa Emaar, Almasar Alhadeeth Co. Ltd., Thabat Al Maskan, Maya Real Estate Development and Investment Co., Al Raem Contracting Co., TELAD Real Estate Co., Alramz Real Estate co., and Ledar Co. These agreements aim to provide supply chain services and enhance collaboration within the sector. The company also finalized two open purchase agreements, one with Zamil Air Conditioners Co. and another with Alfanar Co., further supporting its operational capabilities. A major milestone in the agreements is the launch of the logistics city in the Khuzam destination. This initiative, in collaboration with China's CITIC Construction Co. and Alrawaf Contracting Co., aims to enhance the efficiency of supply chains in the real estate sector.
