Real estate contributes 12.2% to GDP in Q3 2023: Al-Hogail

Minister of Municipal, Rural Affairs, and Housing Majid Al-Hogail

Minister of Municipal, Rural Affairs, and Housing Majid Al-Hogail said that real estate activities’ contribution to the non-oil gross domestic product (GDP) amounted to 12.2% in Q3 2023, while the construction sector’s contribution reached 11.3%.

During the third edition of the Future of Real Estate Forum 2024 in Riyadh, Al-Hogail stated that the construction sector is linked to more than 120 economic industries, emphasizing its importance.

The Kingdom now has a real estate market that is appealing to investors, stimulating growth, and capable of maintaining sustainability, according to the minister, who also indicated that the market has flexible regulations and legislation that achieve effectiveness and flexibility in incorporating sector updates.

Moreover, Al-Hogail said that the real estate sector has witnessed deliberate and major transformations over the past years at all levels to meet the arising challenges, adding that the contribution of banks and financial institutions to real estate loans exceeded SAR 650 billion, while the number of state-backed loans reached about 750,000 contracts.

The ministry increased the real estate supply in the Kingdom from 2018 until the end of 2023 by offering 450,000 residential units and lands, Al-Hogail added.

He also highlighted the ministry’s goal to enhance this supply by approximately one million housing units by 2030 in partnership with major real estate development companies such as National Housing Co. and ROSHN, among others, inside and outside the Kingdom.

About 2,000 developers were qualified, 765 plans with a total area of more than 16 million square meters were approved, and infrastructure plans for more than 350 residential plans were supported, approved, and received, Al-Hogail said.