Saudi Arabia to build over 1m homes to solve housing crisis

Saudi Arabia is taking an unprecedented hands-on role in housing finance and development as it seeks to re-energise a plan to build over 1m homes and make ownership more affordable.

The housing ministry plans to create its own development company and start a mortgage-guarantee fund to encourage banks to increase lending, said minister Majed al-Hogail. 

“We are looking to improve the productivity of the local developers”, but also trying to attract international developers and teaming consultants and builders for some projects, he said.

Despite its vast oil wealth, the country faces a shortage of more than 1.5m homes over the next five years and most young families are unable to own their homes due to a lack of lending and construction.

Since taking power in 2015, the regime of King Salman has been working to realise the home-building vision set out by former King Abdullah in 2011.

It imposed a tax on urban land that’s not being developed by its owners.

The ministry is now turning to a profit-sharing plan that helped Dubai turn desert land into a thriving metropolis.

The country must attract large foreign builders because the capacity of local contractors is too small to manage the scale of projects it envisages.


Lifestyle

These green pancakes are topped with avocado, tomato and cottage cheese.How to make Jamie Oliver’s super spinach pancakes

Who else can pull off a look described as a ‘hip-hop Michelin woman’?As her new EP drops, this is why there will never be a style icon quite like Missy Elliott

The classic white-tipped look is once again in favour, and celebs are loving it.The French manicure is back – 5 modern ways to try the trend

The A-Listers hiding in plain sight: As Rihanna is spotted at the cricket, who are the celebs who have been living under our noses in Ireland? Ed Power reports.Celebs in plain sight: The A-Listers living under our noses in Ireland

More From The Irish Examiner