Saudi Arabia Scales Up Housing Efforts in Riyadh to Meet Annual Demand
The Ministry of Housing is boosting development incentives and regulation as Riyadh targets 130,000 new units annually.
The Saudi government is intensifying its efforts to meet Riyadh's rising housing demand, with plans to deliver up to 130,000 residential units annually, according to Minister of Municipal and Rural Affairs and Housing Majid Al-Hogail. The city currently meets only 40% to 50% of that demand, prompting a multi-pronged government response to stimulate construction and attract both local and international real estate developers.
To increase affordability, the National Housing Company has been tasked with delivering 60,000 housing units in Riyadh, many of which are priced below SAR 450,000 before subsidies, targeting middle-income Saudi families. The ministry is also working to regulate the housing market more effectively, introducing legislation to formalise landlord-tenant relations and revising the White Land Tax to include an annual levy on long-vacant properties without valid use.
These policies are part of a broader strategy to close the supply gap, make housing more accessible, and ensure efficient land use as Riyadh's population continues to grow.
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