Translating Affordable Housing Policy Objectives Into Commercial Concepts That Fit the Private Sector

When Affordable Housing Policy objectives are designed to solicit private sector participation, then the commercial considerations of private sector companies must be considered. Too often, affordable housing policy is written in a ‘’bubble’’ without considering the commercial impacts to the private sector; and then once the program reaches the execution phase, the policy must be modified or re-worked to accommodate private sector and commercial realities.

International best-practices has shown that the involvement of consulting companies with specifically real estate development expertise within the policy creation process, has yielded the best results. These consultants who typically advise private sector developers and are considered relative ‘’experts’’ in the field, can provide government policy makers with keen insights on how policy objectives which are being considered, will actually play-out in the market, and also analyse and present recommendations based on anticipating the commercial repercussions of policies. As a result, real estate development expertise and the commercial realities of the private-sector real estate market are infused into the policy creation process from the beginning, thus increasing the success-rate of the affordable housing program over the execution horizon.

Part 2 of TCN’s White Paper on Affordable Housing in the Kingdom of Saudi Arabia will provide more details on the above and will be released shortly.[/vc_column_text][/vc_column][/vc_row]