The Ministry of Housing announced Sunday the largest ever housing scheme as yet, including ready and under construction houses, as part of the National Transformation Program that seeks to provide housing to a million Saudi families within four years. The plan also covers housing finance that includes loans from real estate finance institutions and banks. Housing Minister Majed bin Abdullah Al-Hogail is expected to announce as many as 270,000 housing units developed by local companies as well as foreign ventures in Riyadh and Al-Ahsa, mainly Korean and Chinese companies. This is in addition to several units constructed or developed during the past five years in a number of cities and regions of the Kingdom, and loans under the housing subsidy program and Real Estate Development Fund (REDF). The new move has come 14 months since the suspension of subsidized housing schemes. Meanwhile, the REDF is not extending loans to applicants on the waiting list, estimated to be 430,000 citizens. Last week, the REDF called on wait-listed applicants and those on the approved list to update their personal details on its portal to avail of the new programs due to be launched soon. Earlier, the Saudi Arabian Monetary Agency (SAMA) announced for the first time a reduction in housing loan installments from 30 percent to15 percent. It also decided to increase the maximum limit of bank housing finance to first time home owners from 70 percent to 85 percent. This decision is in line with the objectives of the National Plan for Housing, enabling banks and banking corporations to offer diverse products in the interest of citizens. Moreover, the Ministry of Housing has strengthened its partnerships with local real estate development companies whereby these firms will participate in national efforts to provide housing to citizens. Agreements will also be concluded with Saudi banks and private enterprises to provide housing finance programs. The housing sector is thus expected to see major transformation within the framework of the National Transformation Program (NTP) 2020. The NTP calls for the provision of about one million new dwelling units, at an average of 250,000 such units per annum. The NTP is deemed to be the first endeavor of its kind to benefit those who are eligible for housing, as part of the housing subsidy program, after loans from the REDF were suspended in November, 2015. Meanwhile, the Housing Ministry is expected to announce a bilateral agreement with a number of local banks for real estate funding of ready houses, with the Ministry bearing the cost of interest.
