King Abdullah Economic City (KAEC) is set to offer affordable homes in its newly built Al-Shurooq community, according to a company statement.

The 250,000-square-metre Al-Shurooq community is made up of 1,440 apartments that vary in size from one- to four-bedrooms, said the statement.

Fuelled by the need for more affordable homes across the kingdom’s urban areas, and in a bid to raise home ownership from today’s 36 per cent of the population, Saudi Arabia’s real estate market is set for changes, with analysts predicting a spike in small development launches in the coming years.

Falling sales prices and speculation surrounding the new white land tax has, however, increased uncertainty and resulted in few new project launches in recent months.

Once completed, KAEC will house up to 2 million people in 250,000 apartments and 25,000 villas, creating 1.3 million jobs. It will include: a seaport; an industrial area; an educational zone; a central business district with commercial, mixed-use and retail outlets and a financial island; resorts; and a residential area.

According to a 2012 masterplan, SR125bn ($33bn) investment will be required for infrastructure development in the new economic city in the coming years.