NHC Cityscape Global 2025: SAR 5 Billion in Development Agreements

NHC Cityscape Global 2025: SAR 5 Billion in Development Agreements

At Cityscape Global 2025, the National Housing Company (NHC) signed agreements worth over SAR 5 billion (USD 1.3 billion) for development of nearly 5,000 new housing units, including six agreements specifically for Riyadh covering housing units and a mall. These agreements represent a single event’s contribution to a supply pipeline that spans 25 urban destinations across 17 cities, where NHC has launched more than 134,000 new housing units in 2025 with a total value exceeding SAR 100 billion.

Cityscape as a Partnership Acceleration Platform

Cityscape Global has become the primary venue where NHC converts its master-planned community land banks into third-party development partnerships. The event’s function within NHC’s operational model is specific: NHC controls the land, infrastructure, and community planning within its destinations, then invites private-sector developers to build residential and commercial components within those frameworks. This model allows NHC to scale delivery beyond its own construction capacity while maintaining control over community design standards, amenity provision, and integration with government housing programmes.

The SAR 5 billion in agreements at a single event demonstrates the private sector’s willingness to invest in NHC-planned communities. This willingness is rooted in NHC’s market position: with 62 percent off-plan market share and the largest market share as a real estate developer selling end units, NHC’s communities offer developers access to a captive demand channel fed by the Sakani platform’s 4.6 million registered users.

The six Riyadh-specific agreements reflect the capital’s dominance in housing demand. Riyadh’s apartment prices have surged 82 percent since 2019, residential prices climbed 10.6 percent year-on-year in Q2 2025, and the government has allocated SAR 220 billion primarily for housing supply with a focus on the capital. The mall component within the Riyadh agreements signals NHC’s integrated approach — residential communities require commercial amenities, and incorporating retail development into housing agreements ensures that NHC’s destinations function as complete urban environments rather than isolated residential enclaves.

International Partnership Expansion

NHC used Cityscape Global 2025 to announce new international partnerships worth SAR 8 billion with entities from South Korea, China, and Egypt. These partnerships bring the total value of NHC’s global partnerships to more than SAR 40 billion. The international dimension serves multiple purposes: it imports construction expertise and capacity, introduces design diversity into NHC communities, and creates diplomatic and economic linkages that reinforce Saudi Arabia’s broader foreign investment strategy under the foreign ownership law effective January 2026.

The South Korean partnership deserves particular attention. South Korean construction firms — companies like Hyundai Engineering & Construction, Samsung C&T, and Daewoo E&C — have extensive experience in Middle Eastern mega-projects and bring advanced construction technology, including modular building techniques and smart home integration. Their involvement in NHC’s housing programme adds technological sophistication to the delivery pipeline.

The Chinese partnerships align with the broader agreement for 100,000 homes in 2026. At the project level, China Harbour Engineering Company’s SR 7.7 billion contract at SEDRA and WAREFA for 6,700 units represents the largest commercial contract among Saudi giga-projects, with a 45-month completion period. The Ministry of Municipalities and Housing has signed strategic partnerships with 36 international developers across 7 countries, and the Cityscape announcements extend this network further.

Egyptian partnerships tap into the construction labour expertise that Egyptian firms and workers have long provided in the Gulf region. Egypt’s construction workforce is among the largest in the Middle East, and formal partnership agreements create structured channels for labour deployment that benefit both countries.

SAR 60 Billion Investment Opportunity for 2026

Beyond the agreements signed at Cityscape, NHC announced SAR 60 billion in housing and commercial investment opportunities for 2026, encompassing real estate development, supply chains, and sustainability. This forward-looking announcement functions as a market signal to developers, financiers, and supply chain participants: NHC’s growth trajectory will continue to create partnership opportunities at scale.

The SAR 60 billion figure represents NHC’s pipeline of development parcels, infrastructure contracts, and commercial opportunities within its 25 urban destinations. For context, NHC’s 2024 revenue was SAR 26 billion — itself a record that exceeded combined 2022 and 2023 revenues. The 2025 revenue target to double that figure to approximately SAR 52 billion, combined with SAR 60 billion in 2026 investment opportunities, indicates a growth trajectory where NHC’s annual activity approaches SAR 50-60 billion — placing it among the largest real estate developers globally by revenue.

Community-Level Impact

The nearly 5,000 units from Cityscape agreements will be distributed across NHC’s community portfolio, which includes flagship destinations in every major Saudi city. In Riyadh, NHC Khuzam offers integrated communities applying sustainability standards. In Jeddah, Sadal within the Al Wareef Destination features contemporary Hejazi designs, and Morjanah in East Jeddah combines modern design with green and recreational spaces. In Makkah, Al Nada offers premium residential units close to the Holy Mosque. Tabuk destination brings NHC’s integrated residential model to the Kingdom’s northwest.

Each community operates within the Wafi-licensed off-plan framework, with 434 approved projects and 350 qualified developers nationwide. The escrow account system — requiring deposits tied to completion milestones, prohibiting direct payments to developers, and capping reservation deposits at 5 percent of unit value — protects buyers in Cityscape-announced projects just as in any other Wafi-licensed development. The 7 percent annual compensation for late delivery and structural warranties up to 10 years apply regardless of whether the developer is NHC or a Cityscape partner.

Employment and Economic Multiplier

NHC’s scale generates substantial employment effects. The 600,000 jobs added to the Saudi economy in 2024, with plans for 150,000 more in 2025, reflect the direct and indirect employment generated by NHC’s construction activity, community management, and supply chain operations. Each Cityscape agreement creates construction jobs during the building phase, permanent facility management positions, and retail employment in commercial components.

The Developer Support Program has qualified 310 certified developers, including 70 new entrants, creating an expanding ecosystem of firms capable of participating in NHC partnerships. A 63 percent increase in small and medium project licenses demonstrates that NHC’s growth is not limited to mega-developers — smaller firms are entering the ecosystem and securing roles within NHC’s community developments.

Integration with Housing Programme Metrics

The Cityscape agreements contribute to NHC’s delivery targets at multiple levels. The 300,000-unit target by end of 2025 and the 600,000-unit target by 2030 require sustained new unit launches, construction completion, and buyer absorption. Over 60,000 families have already moved into NHC developments, and more than 134,000 units have been sold to date.

For the homeownership programme, Cityscape agreements create supply that feeds the Sakani platform’s allocation system. Over 106,000 housing contracts were signed through Sakani during H1 2025, and over 54,000 families benefited from housing support programmes in the same period. NHC’s off-plan units — approximately 26,000 launched through Sakani in H1 2025 — represent a significant share of the platform’s available inventory.

The mortgage market provides the financing infrastructure for these transactions. Total real estate loans outstanding reached SAR 951.3 billion by end of 2025. SAMA’s rate cuts to 4.25 percent reduce financing costs for buyers of units in Cityscape-announced projects, while SRC’s refinancing activities ensure banks maintain liquidity for continued mortgage origination.

Regulatory Framework Supporting Cityscape Partnerships

The agreements signed at Cityscape operate within a comprehensive regulatory environment that protects buyers and ensures delivery accountability. The Wafi programme requires all off-plan projects to maintain dedicated escrow accounts, with purchase amounts deposited according to completion milestones. Developers cannot receive payments directly from buyers — all funds flow through escrow accounts with unified numbers referenced in every sale contract. The maximum reservation deposit is capped at 5 percent of unit value.

These protections apply equally to NHC’s own developments and to third-party developers building within NHC communities. Late delivery triggers 7 percent annual compensation in favour of the buyer, and structural warranties extend up to 10 years. The developer qualification process requires a Wafi Committee certificate before registration on Etmam, with applications processed within 10 days. These timeframes ensure that new developers entering through Cityscape agreements can be operationally qualified rapidly.

The 1,130 field inspections conducted in 2023 — a 28 percent increase from the prior year — demonstrate active enforcement across the developer ecosystem. The 68 percent reduction in fraud and non-delivery rates since 2022 provides confidence that the regulatory framework governing Cityscape-announced projects is not merely theoretical but actively enforced. For buyers purchasing units in these newly announced developments, the enforcement record reduces the risk premium associated with off-plan purchases.

Real estate advertising requirements under REGA mandate that all marketing materials include brokerage license number, location details, property specifications, pricing, and contact information. These transparency requirements apply to the marketing of Cityscape-announced units, ensuring that buyers receive standardised information regardless of the developer.

Financing Infrastructure for Cityscape Units

The Sakani subsidy structure ensures that qualifying families can afford units in Cityscape-announced projects. REDF provides monthly payments covering profit amounts on up to SAR 500,000 in financed amount, with non-refundable grants of SAR 100,000 or SAR 150,000 reducing effective purchase costs. For families earning SAR 14,000 or less monthly, the 100 percent profit coverage rate eliminates financing costs entirely. Down payment reduction to 5 percent for REDF beneficiaries on properties valued at SAR 800,000 or less brings the upfront capital requirement to SAR 40,000 — within savings reach for families whose rental costs are frozen under the Riyadh rent freeze.

The SRC refinancing infrastructure ensures that banks originating mortgages for Cityscape unit purchases can recycle capital through the RMBS channel and the SAR 20 billion local sukuk programme. SRC’s SAR 10.8 billion in agreements with Al Rajhi Bank and SAR 10 billion partnership with REDF demonstrate the refinancing capacity available to support continued mortgage origination at the volumes Cityscape-announced developments will generate.

Competitive Positioning

NHC’s Cityscape presence reinforces its competitive position against ROSHN, the PIF-backed developer with approximately 155,880 planned units across seven communities. While ROSHN operates as a single integrated developer building its own communities, NHC functions more as a platform — planning communities, developing infrastructure, and then inviting developers to build within its frameworks. This platform model enables faster scaling through partnerships, which the Cityscape agreements demonstrate.

ROSHN’s current pipeline of 85,000 units falls considerably below its 400,000-unit target, requiring 115,000 units per year to close the gap. NHC’s platform model, generating SAR 5 billion in single-event agreements and SAR 60 billion in annual investment opportunities, demonstrates an alternative scaling approach that leverages partnership capital alongside institutional resources.

Sustainability and Innovation Agenda

NHC’s Cityscape presence also advanced its sustainability agenda. The NHC Innovation arm, established in 2025 as the innovative arm focusing on sustainable digital solutions in real estate and municipal sectors, provides technological capabilities that differentiate NHC communities from private-sector alternatives. Smart community infrastructure, digital twin construction management, and sustainability-focused design standards attract both buyers and development partners who prioritise environmental performance.

The sustainability dimension is commercially significant: international partners from South Korea and Europe bring green building expertise and certification experience that enhances NHC communities’ market positioning. As Saudi Arabia’s building codes increasingly incorporate energy efficiency and environmental standards, NHC’s early adoption of sustainability practices creates competitive advantage for communities developed through Cityscape partnerships.

The five-year housing construction plan’s USD 43 billion budget includes provisions for construction innovation and sustainability. Cityscape agreements that incorporate these requirements ensure that new housing stock meets evolving standards, reducing future retrofit costs and improving long-term asset values for homeowners.

Assessment

Cityscape Global 2025 confirmed NHC’s ability to convert its master-planned community framework into private-sector partnership capital at scale. The SAR 5 billion in agreements, six Riyadh-specific deals, SAR 8 billion in new international partnerships, and SAR 60 billion in 2026 investment opportunities collectively reinforce NHC’s position as the dominant institutional force in Saudi housing delivery. The nearly 5,000 new units from these agreements represent incremental supply within a pipeline already delivering at the scale required to approach the 600,000-unit 2030 target.

For related analysis, see NHC Corporate Strategy, NHC Delivery Targets 2030, Housing Supply Dashboard, NHC International Partnerships, ROSHN vs NHC Comparison, NHC Revenue Doubling Brief, Sakani Programme, Homeownership Tracker, and Chinese Developer Agreement Brief.