Saudi Arabia’s Crown Prince Mohammed bin Salman has ordered reforms to stabilise land and rental prices in Riyadh, following a study by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs.
The directives aim to counter the recent surge in property prices and improve access to affordable housing across the Saudi capital, the Saudi Gazette reported.
Saudi Crown Prince orders Riyadh real estate reforms
Under the new measures, restrictions on land transactions will be lifted in two northern areas of Riyadh.
The first covers 17 square kilometres, while the second spans 16.2 square kilometres. These areas join previously released zones, bringing the total development area to 81.48 square kilometres.
“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,” according to the report.
These plots will be priced at a maximum of SR1,500 per square metre and offered to eligible Saudi citizens who are either married or aged 25 and above with no previous property ownership.
Buyers must adhere to specific conditions, including a ten-year restriction on selling, renting, or mortgaging the land, except for construction loans. Failure to complete construction within this period will result in the land being reclaimed with a refund of its value.
The Crown Prince has also ordered amendments to the White Land Tax Law to be implemented within 60 days to increase real estate supply. Additionally, regulatory actions will be taken within 90 days to ensure fair relationships between landlords and tenants.
The General Real Estate Authority and the Royal Commission for Riyadh City have been tasked with monitoring property prices and submitting regular reports to maintain market transparency and stability.
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