Saudi Minister of Municipalities and Housing Majed Al-Hogail stated that the Kingdom’s housing sector has witnessed exceptional progress in recent years. This growth is attributed to the expansion of both local and international real estate development companies, alongside a surge in investments and financing, as well as the advancement of regulations and technologies supporting the sector.
Al-Hogail explained that the number of local real estate development companies has surpassed 100, strengthened by the recent entry of international firms into the Saudi market.
He also revealed that the National Housing Company has invested in building around 300,000 residential units in partnership with local developers, with a budget exceeding SAR 250 billion. Similar levels of investment are planned over the next five years.
He highlighted the significant growth in the financing sector, noting that total residential financing has exceeded SAR 900 billion, representing about 27% of total banking sector assets. The market has also seen the entry of foreign financing through a $4.5 billion issuance on the London Stock Exchange, attracting interest from more than 300 global investors.
Regarding future outlooks for 2026 and the long-term strategy, the minister said that major cities, which house around 70% of the Kingdom’s population, will need approximately 1.5 million housing units in the coming period.
He confirmed that the National Housing Company plans to inject an additional 300,000 units over the next five years, focusing on providing homes for first-time buyers within integrated residential communities.
Al-Hogail pointed to the role of the Public Investment Fund and its subsidiaries, such as ROSHN, alongside private sector contributions and government support programs, in meeting growing demand and achieving a sustainable balance in the real estate market.
On balancing supply and demand and its impact on prices, Al-Hogail referred to directives from the Crown Prince aimed at increasing land supply by lifting restrictions and injecting more than 80 million square meters into the market. In addition, the implementation of white land fees has encouraged land development and increased housing supply.
He added that improving the relationship between landlords and tenants and providing accurate price indicators have contributed to greater market stability. The ongoing price correction is making the market more aligned with the financial capabilities of renters and buyers. This approach aims to achieve balanced and sustainable growth in the real estate sector in line with government ambitions.
