The Housing Ministry intends to build 15,000 homes in different parts of Taif, an official source at the ministry said.
"The project will be implemented in various phases and will reduce real estate prices in the city," the source said.
Taif Mayor Muhammad Al-Mukhrej said his organization has allocated adequate land for constructing new homes.
"We have already given 5 million sq. m. of land to the ministry. It will be followed by another allocation of 7 million sq. meters," the mayor said.
Al-Mukhrej said plots have also been allocated in the nearby townships to carry out housing projects.
Abdullah Al-Kinani, an economist, said the new housing projects would bring down rents and real estate prices in the city in the next few months.
"Real estate prices in Taif have shot up in recent years. As a result, the demand for land and houses has decreased," he said.
"I expect the prices will go down by 50 percent once the ministry starts building new homes to distribute them among Saudis," Al-Kinani said.
Custodian of the Two Holy Mosques King Abdullah has ordered the construction of 500,000 homes in different parts of the Kingdom at a cost of SR 250 billion.