A recent Saudi government $385 billion construction development plan will “somewhat satisfy” Kingdom's housing demand which is poised to grow at 13 percent CAGR by 2013, said RNCOS in its new study on Saudi housing sector. “The government approval of $385 Billion plan will infuse the construction industry growth pace in the Kingdom.” According to the plan, nearly one million housing units will be built along with hundreds of schools and hospitals. “This move (will) somewhat satisfy the rapidly growing housing demand in the country, which is expected to face a housing shortage of around 2 million units by 2012,” the report said. The average household size in Saudi Arabia was estimated to be 5.6 in 2004, which is anticipated to fall significantly by 2015 as it tends toward the nuclear family units, it added In 2009, the housing industry in the Kingdom had emerged as the most dynamic segment of the real estate industry. With the entry of a number of real estate developers as well as increasing demand for real estate finance and residential property, housing industry has witnessed a tremendous growth. The fast increasing population along with affluence, demands for housing units are anticipated to grow at 13 percent CAGR during 2011-2013, the study forcast. It noted that affordable housing segment will remain the center of development in near future amid fast growing middle class population.
