Eight factors led to an increase in the proportion of home ownership to 62% by the end of 2020, exceeding the target, compared to only 47% before the launch of the Kingdom’s Vision 2030 in 2016. The factors included finding clear strategies and budgets for the housing sector, and abolishing the concept of waiting from 15 years to maturity. Instant and electronic provision of a stock of land at the disposal of the Ministry of Municipal and Rural Affairs and Housing, and the creation of agreements with banks and financing companies to facilitate the provision of subsidized real estate loan. The factors, according to experts, also included launching the housing program within the Kingdom’s vision 2030 to achieve harmonization and unify efforts between 16 different ministries, private agencies and banks Restructuring the Ministry of Housing, launching programs and legislation to regulate the market, and establishing a strategy office for the Council of Economic and Development Affairs to translate the vision and develop strategies for the housing sector. The vision broke the target in the percentage of ownership of 60% in 2020, and 62% in 2025, which means that the target can be reached 70% before 2030. This ends one of the most important dilemmas, as the waiting for a housing loan extended to 15 years before the vision. According to the Real Estate Fund, the total support provided for loans amounted to 28 billion riyals until last month.
The economist Essam Khalifa said: The subsidized loan mechanism, from which the majority of applicants benefit, made a remarkable breakthrough in solving the housing crisis, as the fund bears the financial benefits on the loan, which led to the speed of financing in cooperation with banks and financing companies and canceling waiting lists that reached nearly half One million applications before the launch of the program. Expanding the base of partnerships with the private sector and providing a large stock of land through more than 200 housing schemes for construction contributed to solving the crisis.