The 2025 Strategy of Saudi Arabia's huge national Housing Program

The Housing strategy until 2025

The 2025 Strategy evolves The Program’s strategic focus from rapidly accelerating ownership to steadily improving market affordability, sector maturity and housing access.

Vision 2030 allocates the Level 3 objective “2.6.2 Enable suitable home ownership among Saudi families” to The Program. In 2025 Strategy, The Program becomes laser-focused on maximizing opportunities for citizens to access adequate housing, whether owned or rented.

The 2025 Strategy will deliver significant impacts for the Kingdom’s economy, society, and housing sector, while raising the levels of spending efficiency compared with Phase I. This level of service will be possible through proposals to restructure the way The Program provides financial support to beneficiaries and encouraging the private sector to play a greater role in the delivering of low-income housing. Economically, The Program will contribute with SAR 157 B in GDP, while creating an additional 38K jobs.

The 2025 Strategy of the Housing Program provides clear Mission, Vision and Objectives

The Program pursues a 2025 Strategy directly driven by the clear direction provided by Vision 2030 and successful delivery of the Phase I strategy. Accordingly, The Program developed a comprehensive strategy for 2025 designed around three strategic pillars and a program enabling foundation, which contain the portfolio of initiatives. The design of the initiatives is guided by a set of strategic approaches that identify priority outcomes for the Strategy.

Housing program's vision for the 2025 Strategy

“Offering Housing Solutions that enable Saudi families to own or utilize houses as per their needs and within the scope of their means; in addition to improve the housing conditions of the current and future generations”

Housing program's mission for the 2025 Strategy

“Our mission is to mature the policies, regulations and institutions the housing market requires to meet the demands of the Kingdom's inhabitants as the economy and society realize the ambitions of the Vision 2030”

4 key objectives of the 2025 Strategy that enable the Objectives of the Overall 2030 Vision

The Framework of 2025 Strategy shows how the pillars of the 2025 Strategy connect with the program objectives and Vision 2030’s Level 3 direct objective.

The key themes of the second phase until 2025

The second phase (2021-2025) requires a series of paradigm shifts to ensure the progress achieved to date is sustained, residual challenges in the market are addressed and the housing ecosystem continues to mature. The Program’s 2025 Strategy represents an opportunity for a significant evolution that leverages the foundation laid in Phase I.

The Housing Program Strategy of 2025 is based on the first phase achievements. In the second phase, it is mainly concerned with improving the affordability levels in general in the Saudi housing market, in addition to continue increasing the home ownership rates among Saudi families to reach 70% by 2030. The program will also seek enhancing its financial sustainability.

Finally, The Housing Program Strategy of 2025 aims at fostering the housing ecosystem and facilitate its work by devising regulations and stimulating the sector participation as well as the various stakeholders so as to enable the entire housing ecosystem

Shifts and further changes from earlier efforts

The 2025 Strategy pivots The Program towards the broader objective of improving the underlying affordability in the housing market. Addressing the affordability of the market is essential for The Program to realize the Level 3 objective of fostering opportunities for Saudi families to find adequate housing.

This transition also promotes a more financially sustainable support model compared to Phase I. In Phase I, the overarching strategic push was used to accelerate home ownership, which required generous financial subsidies to overcome affordability issues in the market.

By focusing on the more fundamental challenge, affordability, The Program can take a longerterm perspective focused on uplifting market fundamentals and addressing the specific gaps in affordability across beneficiary segments. This will result in a more targeted support model compared to Phase I.

Promoting affordability requires the broad maturation of the market across the demand-side (by creating stronger incentives for the citizens to take financial responsibility for housing choices), the financing- market (increasing the scale and breadth of capital allocation to the housing mortgage market) and supply-side (boosting industry productivity and delivery capabilities to bring down prices and uplift quality).