Saudi Arabia will need to construct 115,000 new homes annually over the next six years to address the housing needs of its rapidly growing population, according to a recent report by Knight Frank.
This ambitious plan aims to achieve a 70% homeownership target by 2030, up from 63.7% at the end of 2023. Christopher Payne, Chief Economist at Knight Frank MENA, highlighted the benefits of increasing homeownership, including economic stability, wealth creation, and stronger community bonds.
A National Housing Program
The Ministry of Municipalities and Housing (MOMAH) and the National Housing Company (NHC) are working closely with private and international stakeholders to develop affordable and diverse housing options. Key initiatives include NHC’s partnership with Egypt’s Talaat Moustafa Group to build 27,000 homes and a deal with China’s CITIC Construction Group to establish a construction materials industrial city.
The Sakani program, launched in 2017, has already supported over 800,000 low- and middle-income families in accessing housing through subsidies, loan guarantees, and reduced payments.
Economic Momentum and Urban Development
Housing demand is driven by new household formations due to marriage (65%) and by efforts to increase homeownership (35%). Riyadh, in particular, plays a critical role as economic activity drives rising demand, with apartment prices surging 62% and villa prices 37% over the past three years.
MOMAH is also advancing initiatives like Etmam, a digital platform that expedites project approvals and simplifies construction processes.
Vision 2030 Goals
Saudi Arabia’s housing strategy, aligned with its Vision 2030 framework, seeks to unlock the economic potential of its young population, creating a virtuous cycle of economic growth and stability.
