The Saudi Gazette reports on a new interest-free mortgage loan that will take only a few months to obtain in Saudi Arabia, and it will be interesting to see the new loan’s impact on the Saudi housing market.
“Those who are eligible for these loans are married people who are at least 21 years of age, unmarried people aged 24 and older and widows who are at least 40-year-old…Last month, the Council of Ministers announced that Saudis applying for free-interest government mortgage loans from the Real Estate Development Fund would receive SR300,000 and they would not need to present any land ownership deed to submit with the loan application.”
As inflation eases in Saudi Arabia, more are sure to be in the market for homes. Recently, Saudi Arabia’s central bank “said it expected housing price pressures to decrease as additional supply enters the market,” Trade Arabia reports.
Saudi Arabia is experiencing a massive population growth, a fact which is not lost on housing authorities in the Kingdom. “The kingdom has recognized the challenges of providing housing and land for the mushrooming population but a mortgage bill to help facilitate funding has not been approved yet despite years of preparations,” Reuters reports.
The move is sure to spark borrowing by Saudis to purchase properties. It will be interesting to see how popular the plan, which is still being drafted, is among Saudis once approved. According to the Saudi Gazette, 550k applications had already been submitted.