Subsidized housing loans benefitted 424,000 families, says REDF official

Mansour bin Madi, General Supervisor, Real Estate Development Fund 

The total number of families benefiting from the subsidized loan program exceeded 424,000 across the Kingdom, the Saudi Press Agency (SPA) reported, citing the Real Estate Development Fund (REDF) General Supervisor Mansour bin Madi.

The program enabled families to own property during the past three years, compared to about 860,000 families in 40 years with the old fund model.

He indicated that the subsidized mortgage program witnessed the signing of more than 222,000 contracts during 2020, achieving an increase of 43% year-on-year (YoY) for the third year in a row.

Bin Madi pointed out that the integrated efforts of the housing system and financing entities (banks and financing institutions) facilitated ownership procedures that contributed to an increase in the mortgage market by 300%, compared to 2017. Similarly, the move contributed in increasing REDF’s share of subsidized mortgage to 94% by the end of 2020 from 7% in 2017.

The fund will continue offering subsidized loans to enable families to own property, the official stated.