Dubai: Saudi Crown Prince Mohammed bin Salman has directed a series of transformative measures aimed at stabilising the real estate market in Riyadh, due to the significant rise in land prices and rental costs in the capital.
The move follows an in-depth study conducted by the Royal Commission for Riyadh City (RCRC) and the Council of Economic and Development Affairs, which assessed the challenges facing the city’s housing market.
As part of such measures, the Crown Prince has ordered lifting restrictions on land transactions and development in two key northern areas of Riyadh. These areas, covering a total of 33.2 square kilometers, will now allow the sale, purchase, division, and subdivision of land, as well as the issuance of building permits.
The first area covers 17 square kilometers, bordered by King Khalid Road to the west and Prince Saud bin Abdullah bin Jalawi Road to the south. The second area covers 16.2 square kilometers north of King Salman Road, extending to Abu Bakr Al Siddiq Road and Al Qayrawan District.
This initiative aims to address the escalating housing crisis in Riyadh, with the total land now made available for development reaching 81.48 square kilometers, including previously lifted restrictions on 48.28 square kilometers.
To further address the growing demand for housing, the RCRC has been tasked with providing between 10,000 and 40,000 residential plots annually over the next five years. These plots will be sold at a capped price of 1,500 riyals per square meter, available to married Saudi citizens or individuals over the age of 25, provided they do not already own property.
Strict regulations will be enforced on these plots, preventing resale, rental, or mortgage for 10 years, except when used to finance construction. If the land remains undeveloped within this period, ownership will revert to the government, with the buyer reimbursed.
Additionally, the Crown Prince ordered amendments to the White Land Tax Law, designed to stimulate the development of vacant land, which will be introduced within 60 days. In an effort to ensure fairness in the rental market, regulatory measures will be implemented within 90 days to balance the interests of landlords and tenants.
The General Authority for Real Estate and the Royal Commission for Riyadh City will monitor real estate prices closely, submitting regular reports to assess the effectiveness of these reforms and ensure long-term market stability. This initiative underscores the Kingdom’s commitment to creating a more accessible, transparent, and sustainable real estate market.
