By Daniel Shane
Demand for new homes in kingdom to rise to 510,000 by 2028, report says
An estimated 30,000 new homes in Riyadh are needed per year to cope with rising demand for housing, according to a study.
The report, commissioned by the High Commission for the Development of Riyadh, said that there was around 490 sq km in undeveloped residential plots around the Saudi capital, according to Arab News. Present demand for residential lands in Riyadh can be met by about 30 percent of these plots, the study found.
There are currently approximately 960,000 residential units of different types in the city, with an estimated total demand of 510,000 new homes between now and 2028, the report claimed.
“About 5.7m people live in Riyadh. The annual population growth rate stands at 4 percent, and the number of Riyadh inhabitants will reach 8.3m by 2028,” it read.
The study added that new controls and requirements were needed to regulate the activities of real estate brokers, adding that under-developed areas should be given priority for new homes.
Earlier this month, Saudi Arabia’s absolute monarch King Abdullah ordered government ministries to facilitate a SR250bn ($66.7bn) housing construction programme that he originally announced in 2011.
The scheme aims to build 500,000 housing units over several years, to help address a housing shortage among lower-income Saudis.
The programme was part of $93bn in government handouts and welfare schemes that the monarch ordered to stave off possible unrest following the outbreak of Arab Spring political protests in the Middle East.