(MENAFN) During the Housing Finance Conference in Riyadh, the CEO of the Real Estate Development Fund (REDF) highlighted the significant role played by subsidy programs in making homeownership more affordable for Saudi citizens. Mansour bin Madi revealed that from the first quarter of 2017 to the same period this year, approximately 72 percent of the Kingdom's total real estate financing contracts were supported by these programs. Over the past six years, the number of subsidized real estate financing contracts exceeded 724,000, amounting to a total value of SR429 billion (USD114.3 billion).
Bin Madi emphasized the pioneering role of the REDF in fostering a robust real estate financing market, which has increased opportunities for individuals to own homes. This success has also allowed partners and financing agencies to develop programs that align with the fund's objectives.
Among the initiatives contributing to affordable housing is the Real Estate Financing Guarantees Program, which assists citizens who do not meet the qualification criteria for traditional credit. Bin Madi highlighted that this program has already supported over 116,000 beneficiaries, providing them with access to financing options that would otherwise be unavailable to them.
In a strategic move, the Real Estate Financing Guarantees Program has been transferred to the Saudi Mortgage Guarantees Co., known as Damanat, which operates with a capital of SR18 billion. Damanat's primary objectives are to establish a secondary market for mortgages and create a model that supports real estate developers in boosting off-plan sales. These measures aim to enhance market liquidity, facilitate mortgage accessibility, and provide developers with the necessary support to drive the growth of the real estate sector.
Through these subsidy programs and strategic initiatives, Saudi Arabia is committed to promoting homeownership and addressing the housing needs of its citizens. The REDF and Damanat play vital roles in facilitating affordable financing options, fostering a competitive real estate market, and supporting the Kingdom's overall economic development.
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