- Affordable housing top priority for the kingdom
- Government target is 500,000 affordable homes by 2020
The local Red Sea Housing Services (RSHS) is partnering with a Brazilian company that specialises in developing low-cost housing in an effort to meet demand for new homes, due to population growth in Saudi Arabia.
Brazilian firm Direcional Engenharia will work with RSHS to help the housing ministry hit its target of building 500,000 affordable homes by 2020.
Saudi Arabia is struggling to meet housing demand and cheaper housing is expected to be a top priority for authorities in the kingdom, as population growth drives demand for affordability. According to reports, the kingdom will need an additional 1.25 million residential homes by 2018 to keep pace with its growing population, which is expected to reach 37.2m people by 2020.
Authorities have introduced a number of measures to help make housing more affordable, such as the recapitalisation of the Real Estate Development Fund to target low-income households, and the introduction of a mortgage law.