Saudi Minister of Municipalities and Housing Majed Al-Hogail explained that the housing sector has witnessed notable development recently, with the number of local real estate development companies surpassing 100, in addition to the entry of international firms contributing to the market.
He pointed to massive investments in the sector, noting that the National Housing Company has built 300,000 housing units in partnership with local developers, with investments exceeding SAR 250 billion, alongside a plan to construct an additional 300,000 units over the next five years.
Al-Hogail confirmed that financing in the sector has exceeded SAR 900 billion, representing about 27% of total assets, supported by foreign financing through a $4.5 billion offering on the London Stock Exchange with the participation of more than 300 global investors.
He added that there is balanced growth between demand, financing, and supply, supported by the diversification of housing products, while modern regulations and technologies, such as artificial intelligence and advanced construction methods, are contributing to further progress.
He noted that by 2026, major cities—home to 70% of the population—will require around 1.5 million housing units, with a focus on providing first homes. He stressed the role of the Public Investment Fund and companies such as Roshn in achieving this goal and meeting rising demand.
Regarding the impact of supply and demand on prices, Al-Hogail referred to last Ramadan’s decisions aimed at increasing the supply of land by lifting restrictions and injecting more than 80 million square meters into the market, in addition to imposing fees on undeveloped land.
He emphasized that building homes takes about three years and highlighted efforts to regulate the relationship between landlords and tenants to achieve a price balance that serves all parties, noting that the Saudi market is undergoing a price correction aligned with the needs of both tenants and investors.
