Saudi Arabia’s housing sector continues to demonstrate robust growth, with government programs benefiting over 1.2 million families. Minister of Municipalities and Housing Majed Al-Hogail announced these figures at the Budget Forum 2026 in Riyadh this week, outlining ambitious goals for continued expansion of homeownership opportunities and urban development. The initiatives are central to the Kingdom’s Vision 2030 plan and aim to increase the overall quality of life for citizens.
Speaking on Wednesday, Al-Hogail detailed achievements through the end of 2024, including a citizen homeownership rate of 65.4 percent. He indicated plans to sign 100,000 new housing contracts by 2026 and to further boost the rate to 66 percent. These announcements signal a continued commitment to addressing housing needs and promoting economic diversification within the nation.
Expanding Housing Opportunities in Saudi Arabia
A key driver of this progress has been increased access to housing finance. According to the minister, total housing finance reached SR938 billion by the end of the third quarter of 2025. This substantial financial support allowed for the delivery of 107,000 housing units and developed plots of land throughout 2025.
The government is also focused on increasing the supply of more affordable options. Developmental housing programs have already enabled over 50,000 families to purchase homes. Plans for 2026 include the addition of 80,000 new units alongside 20,000 new rental properties, addressing varied affordability levels.
Addressing Supply and Demand
Efforts to balance real estate market dynamics are central to the strategy. The provision of more housing and developed land is explicitly intended to contribute to greater price stability. While specific market conditions vary regionally within Saudi Arabia, the ministry’s goals suggest a broader approach to national affordability.
The focus on increasing housing stock isn’t limited to quantity. Al-Hogail emphasized a commitment to enhancing urban landscapes. This included the creation of 2.5 million square meters of new parks and green spaces in 2025.
Urban Development and Sustainability Initiatives
The Ministry is also undertaking significant regulatory updates to improve urban planning. These revisions aim to create more livable and efficient cities and contribute to overall improvements in quality of life. A notable element is the incorporation of 19 distinct Saudi architectural styles into designs across nine cities.
Sustainability and smart city technologies are integral to the long-term vision for Saudi urban centers. The ministry will continue to explore and implement initiatives designed to reduce environmental impact and improve resource management. Precise details of these ongoing projects weren’t provided, but the commitment signals progress towards a more sustainable future.
Additionally, the government is fostering greater collaboration between the public and private sectors. This increased public-private partnership is expected to enhance the efficiency of housing and infrastructure projects, and ultimately provide citizens with a wider range of housing choices. This collaboration model is becoming a cornerstone of Vision 2030’s implementation across various sectors.
The announcements come against a backdrop of broader economic reforms in Saudi Arabia, aimed at reducing reliance on oil revenues and diversifying the economy. The housing market is seen as a vital component of this diversification, supporting job creation and economic activity in related industries.
Looking ahead, the Ministry of Municipalities and Housing will be focused on executing its 2026 plans, particularly the signing of 100,000 new housing contracts. The success of these initiatives will likely be influenced by global economic conditions and the continued availability of financing. Monitoring the impact of the new urban planning regulations and the adoption of sustainable technologies will also be crucial in assessing the long-term effectiveness of the Kingdom’s housing strategy.
