Focus on affordable housing key driver for Riyadh property market
The government of Riyadh will continue supporting the affordable housing market to drive home ownership among citizens and promote investment in the capital’s real estate market
The Government of Riyadh will continue supporting the affordable housing market to drive home ownership among citizens and promote investment in the capital’s real estate market.
According to a recent JLL report, the Ministry of Housing aims to increase home ownership for nationals from 47% to 52% through boosting affordable residential supply.
The government is also aiming to increase the number of public-private partnership (PPP) agreements to drive this growth, with the ministry announcing eight new PPP agreements in the last quarter alone.
This drive for continued growth in the sector was also marked by a distribution of 105,174 affordable residential products during the year to May 2018.
Craig Plumb, head of research, MENA at JLL, said: “While some developers are expanding their high-end offering, most remain focused on the affordable sector of the market in line with the governments’ continued focus on driving home ownership for nationals. This will continue to be a key driver for the real estate market overall.”
Riyadh’s property market, however, has seen stagnating growth, with the total residential stock in the capital remaining unchanged at around 1.26 million units, with 15,000 units expected to complete by the year-end.
The sales and rents of villas and apartments saw a single-digit decrease on a yearly basis but stabilised on a quarterly basis, the report notes.
Despite there being little change in market conditions, the government continues to launch ambitious new real estate projects in and around Riyadh that are set to boost all sectors of the real estate market in the long-term.
Qiddiya, an entertainment district initiated by the Public Investment Fund (PIF), is one of these projects.
The district is set to include a significant residential component and aims to attract 17 million visitors to the entertainment sector, 12 million retail visitors, and 2 million hotel visits by 2030.