Jeddah home purchases rise twofold in May

Saudi Arabia promotes low-cost home ownership in run-up to Vision 2030

New Corniche, Jeddah, Saudi Arabia. Laarow/Shutterstock

Residential projects in Jeddah that cater to low- and middle-income earners show signs of robust demand, according to CBRE via The National.

Propelled by the government’s affordable housing scheme, the number of mortgage contracts in Saudi Arabia’s second-largest city hit 58,809 in the first five months of 2019, a twofold increase from the same period a year earlier, the consultancy reported Sunday.

The contracts represent a combined value of SAR27 billion (USD7.2 billion).

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“We have seen a number of opportunities consistently arising across all asset classes, with the government’s continued investments reaping rewards as the KSA’s real estate sector grows,” CBRE researchers were quoted as saying.

Affordable housing schemes are gaining traction in the kingdom as the Ministry of Housing implements key policies leading to Vision 2030. The development plan, formed in part to reduce the kingdom’s dependence on oil, aims to promote the rate of home ownership by 60 percent next year, 70 percent by 2030.

To this end, the government has offered low-cost housing initiatives in cities throughout the kingdom.

In addition to residential projects, mixed-use sites are drawing investments in Jeddah. Projects like Jeddah Gate, Tahlia Park and Lilian Towers are particularly popular among businesses and visitors, with Simon Townsend, general manager at CBRE Saudi Arabia, foreseeing the country’s “dedication to evolving its entertainment sector” as a catalyst to “exponential growth” across a range of sectors.