Subsidized real estate financing contracts in KSA exceed 724k

In a bid to make it more affordable for Saudis to own homes, up to 72 percent of the Kingdom’s total real estate financing contracts from the first quarter of 2017 to the same period of this year were supported by various subsidy programs, according to the CEO of the Real Estate Development Fund.

Speaking at the Housing Finance Conference held in Riyadh, Mansour bin Madi said the number of subsidized real estate financing contracts exceeding 724,000 worth SR429 billion ($114.3 billion) in the last six years.

“The pioneering role of the REDF contributed to the creation of a real estate financing market that enhanced the opportunities for beneficiaries to own homes. It also enabled partners and financing agencies to devise programs that support the goals of the fund,” the official said.

He also highlighted the role of the Real Estate Financing Guarantees Program, which assists citizens who are not qualified for credit. Bin Madi said it had helped over 116,000 beneficiaries.

The CEO noted that the program was transferred to the Saudi Mortgage Guarantees Co., also known as Damanat, with a capital of SR18 billion to establish a secondary market for mortgages and build a model to support real estate developers to boost off-plan sales.

Bin Madi said more than 104,000 people received soft mortgages until the end of the first quarter of this year. Furthermore, the real estate fund paid SR940 million to help Saudi families own homes in conjunction with the Ministry of Municipal and Rural Affairs and Housing through its Sakani program, which is an initiative aimed at supporting citizens.

More than 104,000 people received soft mortgages until the end of the first quarter of this year.

Mansour bin Madi

Real Estate Development Fund, CEO