The volume of real estate finance in the Kingdom is poised to cross the SR50 billion mark by the end of the second quarter, with an increase of 5 percent compared to last year’s figures, local media said quoting financial and property experts.

This comes on the back of a number of positive changes in the property market, notably following the Saudi Arabian Monetary Agency’s (SAMA) giving licenses to a group of financial institutions for rendering funding facilities to housing projects, Al-Watan daily quoted the experts as saying.

Economic expert Abdulrahman Al-Sinai stated that the economic activity in the area of real estate will positively reflect on the sector, which is witnessing tremendous growth in light of the geographical expansion of the work of the Ministry of Housing toward provision of adequate housing to citizens.

Meanwhile, property developers seek to create an appropriate and innovative housing environment to a selected group of customers being careful to keep a balance between supply and demand, he said.

He added that the latest regulations, especially the mortgage system, which is awaiting approval before the end of the current year, will push property finance to exceed SR50 billion by the end of the second quarter.

If this positive trend for provision of housing units to citizens continues, it will bring tangible results in the next 15 years, he noted.

Meanwhile, Rafal Real Estate Development Company CEO Majid Al-Huqail said the move being launched by the real estate development companies in the market represents a positive phenomenon. “They are leading innovative housing products destined for different categories of people in the society,” he said.

“Private sector and real estate developers should cope positively with programs worked out by public sector institutions aimed to find realistic long- and short-term housing solutions,” he added.

Real estate activity is expected to grow by 5.8 percent, and its share to the gross domestic product (GDP) is poised to hit 7.2 percent in 2014 compared to 6.8 percent in 2013, he stated.