Crown Prince orders key real estate reforms in Riyadh to stabilize land and rental prices

Saudi Gazette

29-03-2025

Saudi Gazette report
RIYADH — Crown Prince and Prime Minister Mohammed bin Salman has issued directives for a series of comprehensive reforms aimed at stabilizing land and rental prices in Riyadh, following an in-depth study by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs.
The Crown Prince's directives are in response to the significant surge in land and rental prices witnessed in recent years. The measures are designed to achieve balance in the real estate sector and increase access to affordable housing.
As part of the initiative, the Crown Prince ordered the lifting of restrictions on land transactions — including sales, purchases, subdivisions, and construction permits — in two key northern areas of Riyadh.
The first spans 17 square kilometers, bounded by King Khalid Road and Prince Mohammed bin Saad Road to the west, Prince Saud bin Abdullah bin Jalawi Road to the south, Asmaa bint Malik Street to the north, and Al-Arid District to the east.
The second covers 16.2 square kilometers north of King Salman Road, bordered by Abi Bakr Al-Siddiq Road and Al-Arid District to the east, Prince Khalid bin Bandar Road to the north, and Al-Qirawan District to the west.
These areas are in addition to previously released areas totaling 48.28 square kilometers, bringing the total area released for development to 81.48 square kilometers.
The Crown Prince also instructed the Royal Commission for Riyadh City to provide between 10,000 and 40,000 fully planned and developed residential plots annually over the next five years, based on market demand.
These plots will be offered at prices not exceeding SR1,500 per square meter to eligible Saudi citizens — specifically, married individuals or those aged 25 and above with no previous property ownership.
Conditions include a ten-year restriction on selling, renting, or mortgaging the land — except for loans to build on it. If construction is not completed within the decade, the land will be reclaimed and its value refunded.
Additional measures include the rapid implementation of proposed amendments to the White Land Tax Law within 60 days to enhance real estate supply, and regulatory actions within 90 days to ensure fair and balanced relationships between landlords and tenants.
Finally, the General Real Estate Authority and the Royal Commission for Riyadh City have been tasked with monitoring real estate prices in the capital and submitting regular reports to ensure transparency and market stability.