Riyadh’s real estate prices more aligned with buyers' capabilities: Al-Hogail

Saudi Arabia’s Minister of Municipalities and Housing, Majed Al-Hogail, said Riyadh is currently witnessing real estate prices that are more aligned with buyers' purchasing power, expressing optimism for an even greater alignment.

Speaking to Al Arabiya Business, the minister stated that the regulations announced under the directives of Crown Prince Mohammed bin Salman have been highly effective. He noted that their impact is visible across Riyadh, whether in land values, rental rates, or housing unit prices.

“It is important for the regulations to be accompanied by an increase in supply, as the supply deficit relative to demand is the root cause of the underlying issue that must be addressed in order for the market to return to normal,” Al-Hogail said.

He pointed out that the market rollout of a large volume of housing units means keeping pace with the scale of demand, which in turn supports regulatory efforts.

The minister further explained that, at the inception of the National Housing Program, the plan was to build 600,000 housing units by 2030. “Nearly 300,000 housing units have been awarded by 2025. The target for the current year is 65,000 housing units, and 85,000 housing units for the coming year, followed by 60,000 housing units annually until reaching the target of 600,000 housing units,” he continued.

Al-Hogail also noted that this large volume of housing units will be concentrated primarily in six major cities that account for more than 70% of the Kingdom's population, in order to ensure that the growing demand is met.

Moreover, homeownership among local households was achieved faster than targeted, reaching 66.2% by the end of 2025, compared with the target of 65%. This indicates that the National Housing Program within the framework of Vision 2030 is proceeding as planned, he added.

“Our visit to China included the signing of agreements, including those related to supply chains and ensuring the availability of materials at the large sites on which the National Housing Co. (NHC) is working alongside local developers,” said the minister.

He added, “This will facilitate the continuous and regular availability of construction materials. Faster access will also contribute to reducing transportation from factories to project locations, in addition to the localizing of construction and building products.”

The production capacity of Chinese and Saudi contractors continues to expand through modern construction technologies, which contribute to significantly reducing the time required to build projects compared with the past, according to the minister.

This approach, according to Al-Hogail, aims to ensure the continuous injection of housing units in line with growing demand and to prevent the emergence of a gap in the market.