Saudi Arabia hoping for housing sector boom
For the next few years – assuming that the government is able to implement its ambitious objectives – Saudi Arabia‘s housing sector will count among the country‘s particularly dynamic business branches. King Abdullah bin Abdel-Aziz al-Saud has announced his intention to address the shortage of affordable dwellings as quickly as possible. To satisfy the full demand, some 1.5 million residential units would have to be built between 2010 and 2014. Until now, though, it does not appear as if that magnitude will be achieved.
On the other hand, the 500 000 Homes Programme launched in the spring of 2011, together with sundry promotion measures and plans to improve the legal framework for mortgage financing, will surely help enliven the housing sector. Albeit in the past, all such housing goals have been fallen short of by a wide margin.
The 500 000 Homes Programme has been endowed with an overall budget of 250 million S.Rl. (US$ 67 billion). 100 000 residential units worth US$ 13.6 billion are targeted for the project‘s current first phase.
