Moving forward with plans to realize the goals set by the Riyadh Strategy, Saudi Arabia’s Crown Prince Mohammed bin Salman has ordered the allocation of 20 million square meters for residential land north of the capital.
The ownership will be transferred to the Ministry of Municipal, Rural Affairs, and Housing. This comes as part of a drive to improve the housing sector, help families and develop Riyadh.
The allocation aims to increase the residential area of the Al-Jawan suburb from 10 million square meters to 30 million square meters, and build up to 53,000 housing units through integrated projects, facilities, and services in partnership with the private sector. This is on top of the 20,000 housing units that have already been announced.
Support for the housing sector has led to Saudi home ownership increasing from 47% to 60% in the last four years.
The Kingdom hopes the figure will reach 70% under the Vision 2030 reform programs.
“The additional lands allocated to the housing sector north of Riyadh will provide more than 53,000 various housing units that real estate developers will work on, taking into account the quality of services that meet the aspirations of citizens,” the statement said.
The move is also in line with the city’s growth with the aim of becoming one of the 10 largest economic cities in the world and an increase in population from 15 to 20 million by 2030.
Minister of Municipal and Rural Affairs and Housing Majed Al-Hogail said the housing sector contributes more than SR115 billion ($30.6 million) to GDP and provides about 40,000 direct and indirect jobs.
It is worth noting that Riyadh’s housing sector has witnessed rapid growth over the past two years.
Moreover, the capital accounts for nearly 50% of the non-oil economy in the Kingdom and offers infrastructure and real estate development at rates that are 29% cheaper than other cities.
Lower development costs are likely to speed the launching of development projects across various sectors and fields, including housing, which is one of the most fundamental economic sectors attractive to investors.