Launch of an Index to Monitor Saudi Citizens' Readiness to Own Their First Home

Logo of the Real Estate Development Fund

The Real Estate Development Fund launched the first Homeownership Readiness Index (HRI) in the Kingdom, a new national index aimed at monitoring the readiness of Saudi citizens to own their first home.

According to the Saudi Press Agency, the index is issued quarterly, providing a forward-looking measure of consumer confidence in the housing market by measuring four main axes that influence the ownership decision:

Desire to purchase a home, confidence in obtaining financing, ease of access to housing finance, and readiness to provide a down payment.

The index is the first of its kind in the Kingdom, providing insight into citizens’ aspirations and confidence, and the challenges they face in their journey to owning their first home, thereby supporting decision-making, contributing to the development of housing policies, enhancing innovation in financing solutions, and strengthening the housing finance system, in line with the goals of Saudi Vision 2030.

The CEO of the Real Estate Development Fund, Engineer Luay bin Mohammed Al-Nahhas, stated that the index provides a unified tool to measure citizens' readiness to own their first home across the Kingdom, adding that its quarterly publication will enable a better understanding of the changing aspirations and needs of beneficiaries, as well as the challenges facing those wishing to own a home in the future, and will enable the Fund, along with its partners in the housing system, to develop enhanced solutions to support continued progress toward the goals of Saudi Vision 2030.

The Fund stated that the first version of the index represents the national baseline against which future editions will be measured, while subsequent quarterly reports will review developments in homeownership readiness levels, providing decision-makers, financing entities, and real estate developers with an early indicator reflecting market confidence and emerging trends.

Housing in Saudi Arabia

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