Al-Hogail expects large real estate supply in Riyadh

Saudi Arabia’s Minister of Municipalities and Housing, Majed Al Hogail, said Riyadh is currently witnessing historically high demand for construction and development permits, signaling a significant pipeline of real estate supply set to enter the market.

Al-Hogail told Asharq that when supply is higher than demand, the target real estate balance will be achieved. 

He said the real estate market remains stable across Saudi cities, adding that the government is closely monitoring each city and intervening when necessary to ensure market stability.

Speaking on the sidelines of the World Urban Forum (WUF) 13 in Baku, Al-Hogail said the Real Estate General Authority will introduce indicators to monitor price increases that exceed inflation over certain periods, as well as vacancy costs and vacancy rates.

On mortgage portfolios, the minister said the strength of Saudi mortgage assets and households’ strong repayment track record have supported the securitization of mortgage portfolios internationally.

He added that the first issuance in London attracted strong demand from more than 300 investors across multiple regions.

Saudi Arabia aims to securitize SAR 150 billion in mortgage portfolios internationally by 2030, he said.