Saudi Arabia needs 7 years to build needed 1.8 mln homes, says minister

Saudi Arabia needs 1.8 million units to tackle its affordable housing shortage in the next seven years, Saudi Arabia’s Housing Minister Majid Al-Hugail told delegates at a conference in Riyadh, the Saudi capital.

The government has pledged tens of billions of riyals to build affordable housing for its young, growing population. It also imposed a land tax to force land owners to either develop or sell their land plots to bring prices down.

Price inflation and lack of financing for middle-income individuals are key issues keeping citizens, particularly young Saudis, from owning homes. In the past, more investors have opted to push ahead with luxury developments, rather than affordable housing units.

According to recent estimates, the kingdom has seen a shortfall of 160,000 to 200,000 housing units per year, according to data compiled by Argaam.