Home is an important place that mean different things to different people. Some find rest after a tiresome work; and other get down to real business once they are back at home. In 2024, homeownership trends in Saudi Arabia are strongly influenced by the Vision 2030 initiative, which aims to increase the homeownership rate to 70% by 2030. Currently, the homeownership rate stands at around 67-68%, a significant increase from 47% in 2016. This growth is driven by a combination of government initiatives, economic factors, and demographic trends.
The year 2024, has demonstrated interesting trends regarding the homeownership appetite among the Saudis. In Q1, 2024 report, the sale for Villas surged by 5%. This could be linked to the exorbitant prices that are off the rooftops especially in prime areas such as Riyadh. On the contrary, apartment sales recorded 8% increased in the same period. The analysis further indicated that 80% of the residential sales were valued between SAR 250,000 and SAR 1 million. Which is highly impacted by NHC projects. This is indicative that the sales mainly target middle income segments of the market. Given that Saudi Arabia mainly comprise of younger population, homeownership is a dream that many citizens take personally.
Key Factors Influencing Homeownership Trends
Government Initiatives
The Saudi government has launched several programs to support homeownership. In partnership with the Chinese government, The National Housing Company secured an opportunity to develop 15 integrated residential suburbs and 300,000 housing units by end of 2025. These initiatives have drastically reduced the waiting time for housing support and increased the availability of affordable housing in the Kingdom.
Economic Growth
As the Saudi economy grows, household incomes are rising, making homeownership more attainable for many citizens. Notably, the economy is expected to grow at 1.6% annually to reach USD 3 trillion by 2030. The government’s focus on economic diversification and infrastructure development under Vision 2030 is also boosting the real estate market.
Population and Urbanization
The growing population and urbanization trends are increasing the demand for housing, particularly in urban areas. Q1 2024 has seen an exponential growth in population of Saudi reflecting an increase of 1.43% from 2023. A significant portion of the population now resides in cities, further driving the need for residential properties.
Mortgage Financing
The availability of mortgage financing has improved, with substantial investments in residential mortgages, particularly for villas and apartments. Programs like Ejar have also streamlined rental agreements, providing more stability and transparency in the rental market.
Major Housing Developments
The real estate market in Saudi Arabia is set for continued growth, with plans to build approximately 1.2 million new homes over the next decade to meet the rising demand. Mega projects such as ROSHN, New Murabaa, Neom and Diriyah form part of the housing developments that stir growth in homeownership. The government’s strategic focus on housing, combined with private sector involvement, is expected to sustain this growth trajectory, making homeownership more accessible and widespread across the kingdom.
In sum, Saudi Arabia’s homeownership trends in 2024 are shaped by robust government initiatives, economic growth, and urbanization, with ambitious housing projects underway to meet the Vision 2030 goals.