https://arab.news/vwrad
- 48,397 families benefited from subsidized lending compared to 63,845 families in the same period of last year.
- Families that benefited from the self-construction option reached 34,891
RIYADH: The number of families benefiting from Saudi Arabia’s “Sakani” housing loan program fell during the first half of the year amid constrained supply.
Some 48,397 families benefited from subsidized lending compared to 63,845 families in the same period of last year.
The decline may be explained by the lack of supply in the market amid the pandemic, even as demand is still strong, according to Mohamed AlKhars, a member of the housing program advisory board and the chairman of Innovest Property Co.
Families that benefited from the self-construction option reached 34,891, and about 15,924 families opted for the residential land option, Saudi Press Agency reported, citing official data. Those using the subsidized loan to purchase housing units under construction reached 12,356.
House construction is booming in Saudi Arabia fueled by the massive growth in mortgage financing as well as government initiatives such as the Sakani program.
Overall the number of families availing of the various housing options offered under the program fell in the first half of the year to 111,568 families (including 87,896 families who resided in their homes) compared to 187,000 in the first half of 2020.
“The number of Saudi families that demand units annually exceeds 100,000 families and the accumulated demand is about 1 million units, leading to an annual demand of almost 200,000 units,” he told Arab News.
There are 64 housing projects currently under rapid development among a total of 101 projects.
Together they account for about 144,000 various housing units at an average price of up to SR600,000.