The Red Sea Affordable Housing Division was established as a venture philanthropy initiative to serve the large global demand for affordable housing. The attractiveness of this segment is in its double bottom line effect, which results from the profit targets and the sustainable social and economic impact.
Housing, especially middle and low-income housing, is in low supply. Rapid population growth coupled with increased urbanization have put increasing pressure on country’s housing stock and resulted in very large housing shortage. With nearly 40 to 60% of population in emerging countries under the age of thirty years, household formation is growing rapidly, further increasing the demand for housing units. The global demand for housing is estimated to be over 44 million units.
In the Kingdom of Saudi Arabia, the housing shortfall is growing rapidly and is expected to grow from a current level of 700 thousand houses to 2.4 million units by 2020. To address this deficit, the government established a Real Estate Development Fund, which developed various financing schemes to increase home ownership rate. It also consolidated government land under the Ministry of Housing to accelerate the delivery of the 500,000 units announced through a royal decree. The Ministry of Housing recently started a PPP program to complement other housing delivery initiatives.
Red Sea Affordable Housing offers a range of housing solutions and services to the private and public sectors in the form of integrated communities or standalone housing neighborhoods. Red Sea Town is an integrated living community, which provides an environment where people would live, work, play, and learn. It is characterized by a sense of place, community, and identity at affordable prices. Such towns will have an important impact on the social and economic growth of the community at large and will create jobs in manufacturing, construction, supporting industries and services, and in the on-going operation and maintenance of these towns.
Red Sea Affordable Housing units are offered to communities of single homes, apartment buildings, or a combination of both. Structures are built using high quality, cost efficient, and rapid building methods, contributing to the affordability and quick delivery of a sustainable community. The housing types and sizes fit the budgets and social needs of the targeted market segment. Construction material types include conventional concrete built using a rapid and cost effective method, EPS panels, or PVC structures.