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Arab News
05-04-2025
- Business
- Arab News
Shaping Riyadh's real estate market through key transformation measures
Crown Prince Mohammed bin Salman has initiated transformative measures to stabilize Riyadh's real estate market, responding to rising land, villa, apartment prices, and rental costs in the capital. This follows a detailed study by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs, which identified challenges preventing Saudi nationals from owning or renting homes. The measures include easing land transaction and development restrictions in several areas of the city, allowing the sale, purchase, division, and subdivision of land, along with issuing building permits. This aims to address the housing crisis, with 81.48 sq. km now available for development, including 48.28 sq. km where previous restrictions were lifted. To meet rising housing demand, the government will supply 10,000 to 40,000 residential plots annually over the next five years. Priced at a maximum of SR1,500 ($400) per sq. meter, these plots will be available to married Saudi citizens or individuals over 25 who do not own property. Strict regulations will prevent resale, rental, or mortgage for 10 years, except when used for construction financing. If the land remains undeveloped, ownership will revert to the government, and the buyer will be reimbursed. The crown prince has directed the expedited release of proposed amendments to the White Land Tax Law within 60 days, aiming to foster the development of undeveloped land. To ensure fairness in the rental market, new regulatory measures will be introduced 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 closely monitor real estate prices, providing regular reports to assess the impact of these reforms and ensure long-term market stability. This initiative underscores the Kingdom's commitment to a more accessible, affordable, transparent, and sustainable real estate sector. Ihsan A. Buhulaiga, founder of Joatha Business Development, mentioned in an article published by Maal Digital that Riyadh's population has grown at an annual rate exceeding 5 percent, rising from 7.2 million in 2020 to 8.6 million in 2024. This surge has increased demand for residential housing, fueled by thousands of Saudi nationals seeking employment in Riyadh and the relocation of around 600 foreign regional offices to the city. As a result, a significant gap between housing supply and demand has led to a substantial rise in prices. I firmly believe that the crown prince's transformative initiatives will be key to stabilizing Riyadh's real estate market by supporting the introduction of additional residential units and land plots. These measures are also expected to narrow the gap between supply and demand for housing and land. Moreover, they should stabilize property prices, making land and housing more accessible and affordable for Saudi nationals. Additionally, these measures are likely to lead to adjustments and corrections in real estate prices. They will also protect the rights of real estate owners, buyers, and tenants, ensuring a more balanced and transparent sector. These transformative initiatives are expected to enhance the real estate market in Riyadh and beyond, fostering further investments and driving growth without causing disruption. This will strengthen one of the Kingdom's most vital economic sectors. As reported by Al Eqtisadiah newspaper, the real estate sector is the third-largest economic activity in the Kingdom, after oil and gas, and serves as a major driver of employment, particularly through construction-related efforts. Finally, these measures will support the Saudi government's goal of achieving 70 percent homeownership for citizens by 2030, in line with the Kingdom's Vision 2030. • Talat Zaki Hafiz is an economist and financial analyst. X: @TalatHafiz
Leaders
03-04-2025
- Business
- Leaders
Saudi Arabia Boosts Home Ownership with New Real Estate Directives: Al-Jadaan
Saudi Arabia's new real estate directives aim to boost citizen homeownership, Finance Minister Mohammed Al-Jadaan announced. The government unveiled the reforms in March after a comprehensive study by the Royal Commission for Riyadh City (RCRC) and the Council of Economic and Development Affairs. The review analyzed Riyadh's land prices and rental pressures, proposing regulatory solutions for market stability. Key measures lift land transaction restrictions in northern Riyadh's targeted zones. Al-Jadaan told Alekhbariyah the directives align with Crown Prince Mohammed bin Salman's goal to raise homeownership to 70% by 2030. He emphasized the policies will curb real estate price volatility and inflation while enhancing economic stability. Affordable Housing Initiatives The plan permits land sales, subdivisions, and building permits across two northern Riyadh zones spanning 33.2 sq. km. Combined with prior releases, 81.48 sq. km is now available for development. Furthermore, Al-Jadaan expects eased price pressures as developers expand projects in response to increased land access. The RCRC will annually release 10,000–40,000 residential plots priced at SR1,500 per sq. meter for eligible citizens. Plots face 10-year resale and rental restrictions unless used for construction financing. Unused land reverts to the government after a decade, with buyers reimbursed. Al-Jadaan highlighted improved financing access for residential and commercial real estate purchases. Reforms include revised white land fees to incentivize development within 60 days. New landlord-tenant regulations will launch within 90 days to ensure market balance. Authorities will track price trends and assess policy effectiveness through periodic reports. Al-Jadaan affirmed the Kingdom's capacity to stabilize real estate via institutional frameworks. 'These changes reflect Saudi Arabia's proactive approach to economic growth,' he concluded. Short link : Post Views: 2
Arab News
02-04-2025
- Business
- Arab News
New Saudi real estate directives reinforce home ownership goals: Finance minister
RIYADH: Saudi Arabia's newly announced real estate directives underscore the Kingdom's commitment to increasing homeownership among its citizens, according to the finance minister. The changes were initially announced in March, following a comprehensive study by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs. The review examined land price dynamics and rental pressures in Riyadh and proposed a set of regulatory and planning solutions aimed at long-term market stabilization. Among the key provisions is the lifting of restrictions on land transactions and development in targeted areas of northern Riyadh. In an interview with Alekhbariyah, Mohammed Al-Jadaan said Crown Prince Mohammed bin Salman's mandates are intended to raise the proportion of Saudi families who own homes to 70 percent by 2030 – up from 47 percent in 2016. 'The generous directives will contribute to reducing volatility and controlling the rise in real estate sector prices, and will also limit inflation in the Kingdom's economy,' Al-Jadaan stated. The move authorizes the sale, purchase, division, and subdivision of land, as well as the issuance of building permits, across a 17-sq.-km area bordered by King Khalid Road and Prince Saud bin Abdullah bin Jalawi Road, and a 16.2-sq.-km section north of King Salman Road, extending to Abu Bakr Al-Siddiq Road and the Al-Qayrawan District. These areas, combined with previously released plots, bring the total available for development to 81.48 sq. km. Al-Jadaan said the expanded land access will tighten the supply and demand gap in the real estate sector by lifting restrictions on transactions and development in northern Riyadh. He noted that developers are expected to respond by expanding commercial and residential projects, ultimately easing price pressures. To further facilitate home ownership, the RCRC has been tasked with delivering between 10,000 and 40,000 fully planned and developed residential plots annually for the next five years. These will be priced at no more than SR1,500 ($399.87) per sq. meter and made available to married citizens or individuals over the age of 25 who do not currently own real estate. The issued plots will be subject to resale, rental, and mortgage restrictions for 10 years unless used to finance construction. If the land remains undeveloped within that time, ownership will revert to the government, with the buyer reimbursed. Al-Jadaan emphasized that these changes would improve access to financing. Saudi citizens will have better chances to obtain financial support to own a residential home or a commercial estate, he explained. Additional reforms include amendments to the white land fees system, to be implemented within 60 days, aimed at incentivizing the development of unused land. Within 90 days, the government will introduce new regulatory measures to ensure balanced relationships between landlords and tenants. The General Authority for Real Estate and the RCRC will monitor price trends and submit periodic reports to evaluate the effectiveness of the measures. Al-Jadaan further noted that these initiatives prove the Kingdom's ability to stabilize the real estate sector's volatility through entities, institutions, and regulations.
Trade Arabia
02-04-2025
- Business
- Trade Arabia
Saudi Crown Prince orders key real estate reforms in Riyadh
HRH Prince Mohammed bin Salman, Crown Prince and Prime Minister of Saudi Arabia has issued directives for a series of comprehensive reforms aimed at stabilising 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, reported the Saudi Gazette. 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, it stated. 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 sq km, 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 sq km 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 sq km bringing the total area released for development to 81.48 sq km. 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, said the Saudi Gazette report. These plots will be offered at prices not exceeding SAR1,500 per sq m to eligible Saudi citizens - specifically, married individuals or those aged 25 and above with no previous property ownership, it stated. 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, the report added.
Gulf Insider
31-03-2025
- Business
- Gulf Insider
Saudi Crown Prince Orders Real Estate Reforms, Caps Land Prices To Stabilise Riyadh Market
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.
