Saudi real estate activities up 6% in H1 2021: Al Hogail

Majed Al Hogail, the Minister of Municipal and Rural Affairs and Housing

Saudi Arabia’s building and construction activities increased by 14% year-on-year (YoY) in the first six months of 2021, according to Majed Al Hogail, Minister of Municipal and Rural Affairs and Housing.

Real estate activities also grew by 6% YoY in the six-month period, Al Hogail said on the sidelines of the 2nd edition of “Horizons and the Future of the Real Estate Sector” conference and exhibition, which will continue until Dec. 31.

The Saudi real estate market saw an annual increase of more than 375,000 multi-purpose units, as approximately 100,000 new families across the Kingdom join the market every year.

The real estate industry is the most vital and the second largest contributor to the Kingdom’s gross domestic product (GDP), since it is impacted by the growth of more than 120 economic industries.

The realty sector provided more than 40,000 job opportunities, boosted the private sector’s contribution to over SAR 385 billion, helped increasing the local content share in the realty projects to 81%, compared to 35% before the implementation of the housing programs and also exceeding the targeted 75%.