Oct 24, 2023
An overview of Riyadh city:
Riyadh is one of the administrative regions in the Kingdom of Saudi Arabia. It occupies a central location on the Arabian Peninsula, representing the largest portion of what geographers used to call Najd, divided into Lower and Upper Najd. It is situated in the heart of the Kingdom of Saudi Arabia. It is considered the second-largest city and the most populated area in KSA, with a population of approximately 8,591,748 according to the Saudi survey in 2022. The population density in the Riyadh region is estimated at around 5.1 person per square kilometer, while the average density in the kingdom is about 4.6 person per square kilometer. This necessitates the continuous supply of housing for these increasing numbers.
Affordable Housing Initiatives in Riyadh to Address Population Density in Riyadh:
Riyadh has numerous housing initiatives that aim to provide suitable housing for citizens in order to improve the quality of life in Riyadh. These include government housing programs in Riyadh, private housing programs, and public-private partnerships for housing in Riyadh. Here are some of the main housing initiatives in Riyadh:
● Housing Program: This program is considered one of the prominent housing initiatives in Riyadh. It aims to provide affordable housing units and offers solutions to support housing for low- and limited-income families in Riyadh. This program is part of the social housing program implemented by the Real Estate Development Fund in collaboration with the Ministry of Housing. The program relies on providing low-interest loans to adequate families as one of the housing financing options in Riyadh. The housing units are provided at reasonable prices based on the total project cost and offer a variety of unit sizes and designs. The Housing Program in Riyadh has announced around 15 housing projects, providing approximately 26,391 housing units.
These projects are distributed across several neighborhoods in Riyadh and are supervised by the Ministry of Housing in partnership with the private sector, collaborating with qualified real estate developers. High-quality housing units with diverse options and affordable prices ranging from 250,000 to 750,000 Saudi Riyals are provided. The program aims to increase the homeownership rate to 70% by 2030, and these projects are part of the efforts made to achieve this goal.
● Riyadh Residential Project: This project is one of the largest residential projects in the region. It aims to construct and develop residential complexes that include various public facilities, such as mosques, schools, and hospitals.
● Social Housing Project: This initiative aims to provide affordable housing solutions in Riyadh for low-income families. The initiative includes offering reasonably priced and discounted residential apartments along with facilitating access to housing financing programs in Riyadh. Various real estate units are provided through social housing programs, such as housing and sports units, as well as units designated for rent.
Financial support and facilities are provided to citizens for purchasing or renting these residential units, making this project one of the Affordable housing schemes in Riyadh.
● Urban Transformation Project: The goal of this project is to transform and develop random and marginalized areas in Riyadh by re-planning these areas, improving their infrastructure, and providing essential services. This aims at providing housing access for low-income families in Riyadh.
● Sustainable Neighborhoods Project: As part of the sustainable housing policies in Riyadh, this project aims, in collaboration with the private sector, to develop sustainable residential neighborhoods with smart building technologies, providing green spaces and promoting the use of renewable energy.
The value of real estate in Riyadh:
The value of properties in Riyadh varies based on several factors, such as location, size, and Riyadh housing supply and demand. Generally, classy neighborhoods and areas close to the city center tend to have higher prices compared to other areas.
Housing policies in Riyadh:
There are several policies and measures aimed at providing affordable housing in Riyadh. These include:
● Social Housing Program: The affordable housing solutions in Riyadh mentioned above.
● Allocation of Residential Lands: Allocating lands for residential development at reasonable prices aiming to provide more housing units.
● Rent Regulation: Through the enactment of laws and policies that set limits on rent increases, which help in maintaining reasonable rental prices and providing affordable rental housing options.
● Housing development incentives Riyadh: The Saudi government adopts policies aimed at encouraging investment in the real estate sector, such as providing facilities and simplified procedures to ease construction and real estate development. These motivations are meant to promote housing development projects in Riyadh, leading to an increased number of housing units, expanding the supply, and improving market competitiveness, ultimately leading to reduced prices.
● Real Estate Partnerships: They enhance partnerships between the public and private sectors to implement affordable housing projects. These partnerships involve providing residential lands, financing, designing, and construction.
Some of the housing development projects in Riyadh:
● The Residential Villas Project in Eastern Gate: It is one of the largest residential projects in Riyadh, offering approximately 7,000 villas with prices starting from 645,000 Saudi Riyals and monthly installments of 2,152 Riyals.
● Marsyah Project: It is one of the most important affordable housing projects in Riyadh. It is located in the north of Riyadh, and it covers a total area of over 2.7 million square meters. It offers approximately 5,600 housing units, including apartments and townhouses with modern designs. Prices start from 299,000 Saudi Riyals, with affordable monthly installments starting from 899 Riyals.
● Suhail Riyadh Project: The total area of the project is over 1.7 million square meters, and it includes 4,376 diverse housing units.
● Nabd Qiran Project: This project has a strategic location in the north of Riyadh, between Al-Ail Street and King Abdulaziz Road. It comprises 4,358 diverse modern residential units under construction.
● Ishraq Living Project: It provides 2,229 residential apartments spread over an area of more than 554,000 square meters, located in the north of Riyadh, west of King Khalid International Airport.
● Rabia Al-Sharq Project: It includes around 960 housing units.
● Diyar Saad Project: It is located on a total area estimated at 133,000 square meters and consists of 577 townhouse-type residential units.
Moreover, there are many other projects apart from the ones mentioned earlier.
In conclusion, due to the continuous population growth in Riyadh, whether Saudis or other nationalities, it has become necessary to find solutions to support housing for the city's residents. The Saudi government and its efficient administration have noticed this need and have provided solutions through the ready projects, ongoing projects, and future planned projects. By doing so, they guarantee a promising future for the capital and its inhabitants, while also providing comprehensive support to the real estate sector in all its aspects.
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