Off-plan Sale, Rent Program New Mechanism, Set off

The off-plan sale or rent program (WAFI) announced new mechanisms to enable real estate developers to pay the value of the projects’ land from the escrow account, with the aim of facilitating the financing of real estate developers’ business; to contribute to enhancing the real estate supply and maintaining market balance, in accordance with the objectives of the Iskan Program (one of the programs of the Kingdom’s Vision 2030); and to raise the proportion of housing ownership for the Saudi families to 70% by 2030.

The specific mechanisms to enable developers to pay the value of the project land will be realized, in two installments, the first as the collection rate reaches 30%, provided its amount does not exceed the amount that can be used by the collector, for non-construction costs or the percentage of the value of the land from the first payment, or whichever is less.

As for the second payment: it shall take place when the collection rate reaches 75%, and the amount available for use by the collector for non-construction costs or the percentage of the land value from the first payment, or whichever is less, does not exceed what was paid in the first payment, the Secretary-general of the Off-plan Sale or Rent Committee Nayef Al-Sharif explained.

It is noteworthy that the WAFI program offers a package of licenses for off-plan sales projects, and tracks their completion rates and quality of implementation, in addition to motivating and qualifying real estate developers to create distinct and integrated projects, that meet the aspirations of the real estate market.

The program grants off-plan sales licenses to all residential, commercial, industrial and other real estate projects; to promote and increase the supply of real estate units and enhance investment in the sector.