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Saudi Real Estate Development Fund Drops 'First Housing' Down Payment to 5 %

View shows the King Abdullah Financial District, north of Riyadh, Saudi Arabia, May 12, 2016. REUTERS/Faisal Al Nasser
View shows the King Abdullah Financial District, north of Riyadh, Saudi Arabia, May 12, 2016. REUTERS/Faisal Al Nasser
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Saudi Real Estate Development Fund Drops 'First Housing' Down Payment to 5 %

View shows the King Abdullah Financial District, north of Riyadh, Saudi Arabia, May 12, 2016. REUTERS/Faisal Al Nasser
View shows the King Abdullah Financial District, north of Riyadh, Saudi Arabia, May 12, 2016. REUTERS/Faisal Al Nasser

General Supervisor of the Real Estate Development Fund Khalid bin Mohammed Al-Amoudi announced that the down payment for the first housing has been reduced from 10% to 5% to reduce the burden of the advance payment required by the financing parties.

Amoudi addressed challenges in the financing of retirees during the last period, and private sector employees.

Accordingly, appropriate financing solutions were adopted to find new solutions in partnership with banks and finance companies in obtaining mortgage loans by accepting financing from non-corporate entities.

More so, Amoudi announced the launching the “flexible installment” which tunes monthly installments according to the beneficiary’s income so that rates do not exceed 65% of the monthly income after retirement or in the case of a personal loan.

Amoudi stressed the body’s keenness to provide all facilities to beneficiaries and provide suitable financing solutions for all those on the Fund’s waiting lists.

The Saudi Ministry of Housing and Real Estate Development Fund announced its fourth installment of the “Residential” program for year 2018, with a total of 21,840 housing and finance services, distributed throughout the Kingdom.

This year’s programs is set to hit a target of completing 300,000 products, bringing the total of allocated housing support during the first four months to 83,562 residential and financial services.

Housing services provided by the ministry include 7,686 residential units under construction that are up for sale, in partnership with developers. Some 160 units are found in Riyadh and 188 in the Eastern Province.

At least 5,854 land plots are distributed over nine areas including 1,845 land plots in Makkah, 1,484 in Najran, 1,015 in the Asir region, 590 in Jizan, 396 in Al Jouf, 224 in the Eastern Region, 125 in Riyadh, 95 in Al Baha, and 80 in Al-Qassim region.

Financial support programs include 8,300 real estate loans from the Real Estate Development Fund in partnership with banks and financial institutions distributed throughout the Kingdom.

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World Bank Raises China's GDP Forecast for 2024, 2025

World Bank Raises China's GDP Forecast for 2024, 2025
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World Bank Raises China's GDP Forecast for 2024, 2025

World Bank Raises China's GDP Forecast for 2024, 2025

The World Bank raised on Thursday its forecast for China's economic growth in 2024 and 2025, but warned that subdued household and business confidence, along with headwinds in the property sector, would keep weighing it down next year.
The world's second-biggest economy has struggled this year, mainly due to a property crisis and tepid domestic demand. An expected hike in US tariffs on its goods when US President-elect Donald Trump takes office in January may also hit growth.
"Addressing challenges in the property sector, strengthening social safety nets, and improving local government finances will be essential to unlocking a sustained recovery," Mara Warwick, the World Bank's country director for China, said.
"It is important to balance short-term support to growth with long-term structural reforms," she added in a statement.
Thanks to the effect of recent policy easing and near-term export strength, the World Bank sees China's gross domestic product growth at 4.9% this year, up from its June forecast of 4.8%.
Beijing set a growth target of "around 5%" this year, a goal it says it is confident of achieving.
Although growth for 2025 is also expected to fall to 4.5%, that is still higher than the World Bank's earlier forecast of 4.1%.
Slower household income growth and the negative wealth effect from lower home prices are expected to weigh on consumption into 2025, the Bank added.
To revive growth, Chinese authorities have agreed to issue a record 3 trillion yuan ($411 billion) in special treasury bonds next year, Reuters reported this week.
The figures will not be officially unveiled until the annual meeting of China's parliament, the National People's Congress, in March 2025, and could still change before then.
While the housing regulator will continue efforts to stem further declines in China's real estate market next year, the World Bank said a turnaround in the sector was not anticipated until late 2025.
China's middle class has expanded significantly since the 2010s, encompassing 32% of the population in 2021, but World Bank estimates suggest about 55% remain "economically insecure", underscoring the need to generate opportunities.