Latest news with #GeneralAuthorityforRealEstate
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
CairoScene
31-03-2025
- Business
- CairoScene
New Measures Introduced to Stabilise Riyadh's Real Estate Market
New government directives aim to rebalance Riyadh's real estate market by releasing more land, lowering development costs, and introducing rental reforms. Saudi Arabia has announced a set of new housing and real estate measures in Riyadh aimed at easing property price pressures and increasing accessibility for residents and small-scale investors. Approved by Crown Prince HRH Mohammed bin Salman, the directives follow a study conducted by the Royal Commission for Riyadh City in collaboration with the Council of Economic and Development Affairs, which flagged steep increases in both land and rental prices. Key to the plan is the allocation of between 10,000 and 40,000 residential plots per year over the next five years. These plots, developed and priced at no more than SAR 1,500 per square metre, will be reserved for Saudi citizens over the age of 25 who do not already own property. This presents a significant opportunity for middle-income individuals and microenterprises involved in residential construction and related services. In parallel, a freeze on real estate transactions—previously in place across large sections of Riyadh—has been lifted. The decision reopens more than 81 square kilometres of land for development, allowing for increased housing supply and urban expansion. The directives also call for updates to the White Land Fee system, which targets unused urban land to encourage development. The changes aim to bring more real estate into circulation, improving affordability in the capital. In addition, measures are set to be introduced within 90 days to better regulate the relationship between landlords and tenants, offering greater legal clarity and protections for renters. Monitoring mechanisms will also be enhanced, with the General Authority for Real Estate and the Royal Commission for Riyadh City tasked with regularly tracking and publishing market data.
Wamda
12-03-2025
- Business
- Wamda
Ajras closes $1.5 million pre-Series A round
Press release: The Saudi proptech startup Ajras has successfully raised a $1.5 million pre-Series A funding round, led by Veda Holding. Founded in 2022 by Muath Aljubailan, Ajras provides unique financing solutions to facilitate rent payments. The startup focuses on commercial and industrial sectors and is licensed by the General Authority for Real Estate. Additionally, it has recently introduced a 'Rent Now, Pay Later' solution. Previously, Agras closed a seed funding round of SAR 105.05 million in November 2023, led by Madarek International. Veda Holding, based in Riyadh, is a business incubator that supports both startups and established companies by providing the necessary capital for growth.
CairoScene
11-03-2025
- Business
- CairoScene
Saudi Proptech Startup Ajras Secures $1.5 Million Pre-Series A
Established in 2022 by CEO Muath Aljubailan, Ajras offers unique financing solutions designed to facilitate rent payments. Mar 11, 2025 Ajras, a Riyadh-based startup, announced the closure of a $1.5 million pre-Series A funding round led by Veda Holding. Established in 2022 by CEO Muath Aljubailan, Ajras offers unique financing solutions designed to facilitate rent payments, particularly within the commercial and industrial sectors. Licensed by the General Authority for Real Estate, the company's 'Rent Now, Pay Later' model acts as a commercial intermediary, streamlining transactions between landlords and tenants. In November 2023, the startup secured $28 million in a seed round led by Madarak International, bringing its total funding to approximately $29.5 million to date While overall PropTech funding across Emerging Venture Markets (EVMs) experienced a 36% year-on-year decline to $72 million in the first nine months of 2024 - the lowest level in five years - Saudi Arabia demonstrated resilience within this sector. The Kingdom reported a 35% increase in PropTech funding, reaching $9 million, and saw a rise in deal activity from four to seven deals compared to the same period in 2023, according to a report from MAGNiTT.
