The Kingdom requires three million housing units every year, says a study.

Justice Minister Walid Al-Samaani and Housing Minister Majed Al-Hogail on Thursday signed a Memorandum of Understanding (MoU) for housing projects.

“The deal aims at providing sufficient and comfortable housing projects to the citizens in the Kingdom’s various regions,” an online report said.

Saamani commended the Housing Ministry for the “fruitful collaboration between the two ministries to ensure adequate housing for every citizen in the Kingdom.”

“The MoU aims at developing cooperation between the two ministries in public interest. It also helps in the development of functions of both ministries,” he said.

The MoU also aims to contribute to the development of the functions of each of the two ministries. Besides, it intends to develop the mechanisms regarding the housing units and land through the Development Services Center at the Ministry of Housing and its subsidiaries.

“The development of mechanisms is done through coordination between the two ministries,” said the report.

The Kingdom had earlier planned to spend SR250 billion to develop 500,000 low-cost houses across the Kingdom.

“This huge project will considerably bring down house rents,” a housing expert said.

According to a study, the Kingdom requires three million housing units every year.

“We actually need five million housing units annually, considering the increase in the population,” the expert said. The Saudi population currently stands at 30.1 million.

The head of a well-known real estate developer said the supply of housing in Saudi Arabia might lag demand for at least the next five years, creating lucrative opportunities for developers.

He added that supply remains below demand, which is expected to rise to four million units in the next ten years.

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