Sumou to build villas at Makkah gate: Sumou Real Estate signed a 24-month SAR 680 mn agreement with the National Housing Company (NHC) to develop the Areem Makkah residential project, located over a 231.6k sqm area known as Zone O2 within the Makkah Gate project, according to a disclosure to Tadawul.

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We knew this was coming: The company secured a contract in April to develop over 900 residential villas in Zone O2, but it said at the time that further details would be provided upon finalizing the sub-development agreement with the NHC.

ICYMI- NHC signed sub-development agreements this week with our friends at Retal Urban Development valued at SAR 1.4 bn to build 995 residential units in Al Khobar’s Al Aziziya district. It also signed an agreement with the US-based real estate developer K. Hovnanian Homes last week to develop residential and commercial projects in its urban areas.

IN CONTEXT- The government is rolling out incentives to support home buying — including buyer-friendly mortgages — as it looks to add some 1.2 mn housing units to the market and achieve a 70% home ownership target by 2030, tasking the state-run NHC with providing affordable housing options. The state-owned company has some 200k homes in the pipeline, and is striving to add another 100k by the end of 2025, Knight Frank’s Chief Economist for MENA Christopher Payne estimated back in February.

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