National Housing Company (NHC)

National Housing Company (NHC)

The National Housing Company was established in 2016 as the investment arm of the Ministry of Municipalities and Housing, transferred to state ownership in 2020, and rebranded in November 2024. NHC posted record revenue of SAR 26 billion in 2024 and targets SAR 52 billion in 2025. With over 39 major projects across 25 urban destinations in 17 cities, NHC commands 62% off-plan market share. Delivery targets: 300,000 units by end 2025 and 600,000 by 2030, backed by SAR 220 billion government allocation. Over 60,000 families have moved into NHC developments. Key communities include SEDRA (Riyadh), Khuzam, Sadal, and Tabuk.

Definition and Institutional Role

NHC is the principal state-backed residential developer in Saudi Arabia, responsible for delivering the housing supply that underpins the Vision 2030 Housing Program’s 70 percent homeownership target. Unlike a traditional government housing authority that distributes subsidies or allocates land, NHC operates as a commercial developer — it acquires land, designs communities, contracts construction, and sells completed or off-plan units to Saudi families, many of whom purchase through the Sakani platform with REDF financing and Dhamanat-guaranteed down payments.

The company’s 62 percent share of the off-plan market gives it unmatched influence over housing supply dynamics across the Kingdom. With 134,000 units sold to date and 134,000 new units launched in 2025 alone — valued at over SAR 100 billion — NHC’s scale of operations exceeds that of any private-sector developer in Saudi Arabia by a substantial margin. Only ROSHN, the PIF-backed developer with a 400,000-unit mandate, approaches comparable delivery ambitions, though through a different ownership structure and market positioning.

Historical Development

NHC’s institutional evolution reflects the broader transformation of Saudi Arabia’s housing policy from a welfare distribution model to a market-driven development framework. When established in 2016, the entity served as the investment and development arm of the Ministry of Municipalities and Housing, tasked with executing the supply-side strategy of the housing programme. The initial mandate focused on identifying suitable development sites, designing integrated residential communities, and bringing them to market at price points accessible to Sakani beneficiaries.

The 2020 transfer to state ownership marked a significant governance shift. By removing NHC from direct ministerial control and establishing it as an independent state entity, the government gave the company greater commercial flexibility — the ability to enter joint ventures, secure international partnerships, and operate with the financial discipline expected of a large-scale developer rather than a government department. The November 2024 rebranding formalised this evolution, positioning NHC as a recognisable corporate brand capable of attracting international partnerships and investment.

Financial Performance and Growth Trajectory

NHC’s financial trajectory demonstrates the scale of Saudi Arabia’s housing delivery programme. The SAR 26 billion in 2024 revenue exceeded the combined revenues of 2023 and 2022, reflecting an acceleration in unit sales and delivery that corresponds with the housing programme’s Phase 2 delivery ramp-up. The company’s target to double this figure to approximately SAR 52 billion in 2025 implies a continued expansion of sales volume and average transaction values across its portfolio.

The SAR 220 billion government allocation backing NHC’s operations represents one of the largest housing investment commitments by any sovereign government. This allocation funds land acquisition, infrastructure development, construction contracts, and the operational costs of managing a portfolio spanning 39 major projects across 17 cities. The scale of capital deployment enables NHC to negotiate construction contracts at favourable terms and invest in community infrastructure — schools, mosques, parks, healthcare facilities, and retail centres — that would be prohibitively expensive for smaller developers.

At Cityscape Global 2025, NHC signed agreements worth over SAR 5 billion (USD 1.3 billion) to develop nearly 5,000 new housing units, alongside announcing SAR 60 billion in housing and commercial investment opportunities for 2026 encompassing real estate development, supply chains, and sustainability initiatives. These figures indicate that NHC is operating not merely as a housing provider but as a major economic development engine.

Community Portfolio and Urban Destinations

NHC’s development approach centres on creating integrated residential destinations rather than isolated housing projects. Each community is designed as a self-contained neighbourhood with residential units, commercial amenities, educational facilities, healthcare access, and green spaces. This approach reflects lessons learned from earlier Saudi housing developments where residential blocks were delivered without adequate supporting infrastructure.

Key communities in the NHC portfolio include SEDRA in Riyadh, spanning 20 million square metres with 30,000 homes across eight phases, projected to house over 130,000 people. Khuzam in Riyadh offers integrated communities applying sustainability standards. Sadal in Jeddah forms part of the Al Wareef Destination, offering contemporary Hejazi designs in a fully integrated setting. Tabuk destination provides modern designs with gardens and walkways. Additional communities include Al Nada near Makkah’s Holy Mosque, Morjanah in East Jeddah combining contemporary design with green spaces, and Obayya Quarters in Al Fursan for family-oriented living.

The geographic distribution matters. By developing in 17 cities rather than concentrating exclusively on Riyadh and Jeddah, NHC addresses housing demand across the Kingdom and supports the Vision 2030 objective of balanced regional development. Communities in Tabuk, Dammam, and smaller cities ensure that the homeownership programme benefits Saudi families regardless of which metropolitan area they call home.

Delivery Targets and Pipeline Assessment

NHC’s delivery targets — 300,000 units by end of 2025 and 600,000 by 2030 — represent the most ambitious housing construction programme in Saudi Arabia’s history. Combined with ROSHN’s 400,000-unit target, the total state-backed housing supply pipeline approaches one million units by 2030.

The delivery pipeline is supported by 119 projects currently under construction providing more than 155,000 units. The Saudi residential construction market was valued at USD 19.59 billion in 2025, projected to reach USD 25.21 billion by 2030 at a 5.17 percent CAGR, with construction industry growth averaging 5.2 percent annually from 2025 to 2028. NHC is the single largest driver of this construction activity.

Meeting these targets requires scaling construction capacity beyond what the domestic market can provide. NHC has responded by cultivating an extensive network of international partnerships. The company’s global partnerships exceed SAR 40 billion in total value, with SAR 8 billion in new partnerships signed in 2025 alone with entities from South Korea, China, and Egypt. Most notably, agreements with Chinese developers for the construction of 100,000 homes in 2026 represent one of the largest international housing construction commitments in the Kingdom’s history, leveraging Chinese expertise in rapid, large-scale residential construction.

Economic Impact and Job Creation

NHC’s operations generate substantial economic multiplier effects beyond housing delivery. The company reported adding 600,000 jobs to the Saudi economy in 2024, with plans for an additional 150,000 in 2025. These figures encompass direct construction employment, supply chain jobs in building materials and logistics, and indirect employment in the retail and service sectors that support new residential communities.

The Ministry of Municipal and Rural Affairs launched a USD 43 billion five-year plan for construction of 240,000 housing units, with NHC as the primary execution vehicle. This spending flows through the Saudi construction ecosystem, supporting cement producers, steel manufacturers, electrical and plumbing contractors, interior finishing companies, and landscaping firms. The concentration of such large-scale spending through a single coordinating entity allows NHC to develop local supply chains, negotiate bulk procurement agreements, and standardise construction specifications across its portfolio — efficiencies that reduce per-unit costs and improve delivery timelines.

Integration with the Sakani Ecosystem

NHC units are offered directly through the Sakani platform, creating a seamless experience for beneficiaries. A family that qualifies for Sakani support can browse available NHC units, select a property, and initiate the financing process — including REDF profit coverage, Dhamanat-guaranteed 5 percent down payments, and VAT exemption — through a single digital interface. During H1 2025, approximately 26,000 housing units were launched under off-plan sales projects through the Sakani platform, with NHC units representing the majority.

The Wafi programme provides the regulatory framework protecting buyers of NHC off-plan units. All payments are deposited into dedicated escrow accounts managed according to construction milestones, and NHC’s qualification under Wafi ensures compliance with developer standards including 7 percent annual compensation for late delivery and structural warranties up to 10 years.

Over 54,000 Saudi families benefited from housing support programmes during H1 2025, with over 48,000 families moving into their homes. NHC’s share of these outcomes reflects its dominant position in the housing supply chain.

NHC Innovation and Technology

In 2025, NHC established its Innovation arm, focusing on sustainable digital solutions in real estate and municipal sectors. This initiative positions NHC to lead expansion into technology markets through strategic partnerships, applying data analytics, building information modelling, and smart home technologies across its development portfolio. The technology focus aligns with the broader Saudi drive toward smart city development, evident in megaprojects like New Murabba’s 104,000-unit residential component within Riyadh’s 19 square kilometre mixed-use development.

Regulatory Framework and Off-Plan Protections

NHC’s dominance in off-plan sales means that the Wafi programme’s regulatory framework is particularly relevant to its operations. All NHC off-plan transactions are governed by Wafi requirements: buyer payments flow into dedicated escrow accounts managed according to construction milestones, NHC maintains qualification certification from the Wafi Committee, and structural warranties of up to 10 years protect buyers against construction defects. The 7 percent annual compensation for late delivery creates a direct financial incentive for NHC to meet its stated timelines.

During H1 2025, approximately 26,000 housing units were launched under off-plan sales projects through the Sakani platform, with NHC units representing the majority. The Wafi programme’s 68 percent reduction in fraud and non-delivery rates since 2022 reflects the regulatory environment within which NHC operates — the company benefits from the trust infrastructure that Wafi creates, as buyer confidence in off-plan purchases depends on the credibility of the protections that Wafi provides.

The REGA regulatory transfer — consolidating oversight from the Ministry to a single specialised authority — further professionalises the environment in which NHC competes. REGA’s 1,130 field inspections in 2023, representing a 28 percent year-on-year increase, demonstrate active compliance monitoring that maintains standards across all developers, including NHC.

Market Challenges and Strategic Risks

NHC faces several challenges in meeting its delivery targets. The Riyadh real estate market experienced a recalibration in H1 2025, with transaction volumes falling 31 percent year-on-year and total transaction values dipping 20 percent to SAR 29 billion. While residential prices in Riyadh still climbed 10.6 percent year-on-year in Q2 2025, the volume decline suggests that affordability constraints are tempering demand despite programme subsidies.

The affordability gap for middle and lower-middle-income families remains a concern. Riyadh apartment prices have increased 82 percent since 2019, and housing rent inflation reached 7.6 percent as of June 2025. If NHC unit prices track broader market appreciation, the SAR 800,000 ceiling for Dhamanat eligibility may exclude an increasing share of its own inventory from the most favourable subsidy terms.

Construction capacity constraints also pose risks. Despite international partnerships, the simultaneous execution of 39 major projects across 17 cities requires enormous coordination capacity. Labour availability, building material supply chains, and quality assurance across hundreds of thousands of units under construction demand institutional capabilities that must scale in parallel with the project pipeline.

Despite these challenges, NHC’s track record — 134,000 units sold, 60,000 families already occupying homes, SAR 26 billion in annual revenue — demonstrates an institutional capacity that positions it to deliver on its mandate as the engine of Saudi Arabia’s housing transformation.

The broader macroeconomic environment provides tailwinds. The declining SAMA repo rate — from 5.50 percent in September 2024 to 4.25 percent by December 2025 — improves mortgage affordability for NHC unit purchasers. Jadwa Investment expects mortgage demand to gradually improve during 2026, supported by lower rates and greater housing availability. The Saudi real estate market is forecasted to grow from USD 75 billion in 2025 to USD 110 billion by 2030, with NHC positioned to capture a dominant share of this expansion.

For detailed analysis, see NHC Corporate Strategy, NHC Delivery Targets 2030, NHC SEDRA Riyadh, NHC International Partnerships, Housing Supply Dashboard, and ROSHN vs NHC Comparison.