Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Deputy Prime Minister and also Chairman of the Public Investment Fund (PIF), has set an ambitious target of building one million affordable residential units across the kingdom over the next five years through Roshn, a leading Saudi real estate developer powered by PIF, reported Saudi Press Agency (SPA).
Prince Mohammed unveiled the most important achievements of the Kingdom Vision 2030 programmes and projects over the past five years, in an interview transmitting on the state’s television and the most important Arab television channels.
Roshn venture, which aims to meet 25% of the Saudi demand, is eyeing a low profit margin of 22.5 per cent on 3 per cent to make these housing units affordable for citizens, it stated.
“Fortunately, Roshn has been established and the Ministry of Housing has carried out its duties in cooperation with other stakeholders. Under the Saudi Vision 2030, Roshn is set to provide around one million national housing units as per the first objective while the second objective of Roshn unfortunately means that more than 95% of the real estate developers are very primitive, drawing the designs and failed to deliver the sewage, water, electricity and telecommunications services," stated Prince Mohammed.
Slamming these developers, he said "they were selling designs without any services to citizens who build their houses and then the suffering begins."
He pointed out that owing to this, citizens were plagued with poor infrastructure services in their neighborhoods.
"The country is in dire need of strong real estate developers adopting international standards in place in advanced countries and this is the second objective of Roshn which plans to meet 25% of the Saudi demand," he noted.
"However, no one would buy from the private sector if they fail to apply the same standards of Roshn," he added.
Today, the Roshn Company targets the development of the real estate sector in the kingdom to meet part of the existing demand, said Prince Mohammed.
Lauding the Roshn standards, he said: "The biggest advantage of buying units from there is that not oly you get standard housing at a reasonable rate compared to the other real estate funds but also water, sewage, pedestrian and all other services are gauranteed. The best part is one need not go out of the neighbourhood community for any of their daily needs."
Prince Mohammed said since its launch, Roshn had been registering a steady growth and its profits have seen an increase of 7% and more with its housing projects.
On the key challenges, the Crown Prince said: "The biggest problem was to increase the housing percentage, as it was considerably low compared with the international standard of 60%. I was worried because it was a very challenging period that required a comprehensive restructuring for the central government with complete tools all coupled with the challenge of restructuring the Ministry of Housing and unable to meet the envisioned goals in a very short time during the past four years."
"With the existence of such concerns and challenges and the inability or delay of the Ministry of Housing to achieve the necessary preparedness levels, the Roshn venture has been launched in light of the expected growing demand for housing units during the next ten years which may exceed 4 million," he added.