Saudi Real Estate Development Fund and Riyadh-based mortgage lender Bidaya Home Finance have signed an agreement which aims to provide affordable housing and financing solutions to real estate finance institutions and firms.
The initiative falls in line with the goal of one of the Kingdom’s Vision 2030 programs, referred to as “Iskan Program”, to boost the percentage of homeownership to 70 percent by 2030.
The agreement also cements the fund’s pioneering role in stimulating the real estate financing market by diversifying financing and housing options for “Sakani” beneficiaries, while ensuring that they have the proper financial ability to afford housing costs, Madi emphasized.
REDF plans to continue fostering effective partnerships with approved real estate finance entities and firms to further increase their contribution to the real estate financing market.
Saudi Arabia’s housing demand stood at 99,600 houses in 2021 and is expected to increase by more than 50 percent to reach 153,000 houses by 2030.
In 2017, more than 1.6 million Saudi nationals were on waiting lists for government housing programs, prompting the development of the “Housing Program in 2018” with the objective of increasing access for Saudi families to suitable housing.
This initiative reaffirmed Saudi Arabia’s commitment to addressing challenges including population growth, rapid urbanization, an insufficient supply of affordable housing, and an unregulated self-build market.