Saudi Crown Prince Gives Important Orders to Control Land and Rent Prices in Riyadh
On Saturday, Saudi Crown Prince and Prime Minister Mohammed bin Salman announced several steps to help stabilize the real estate sector, according to the Saudi Press Agency.
Stabilizing Real Estate
The orders are based on a detailed study by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs. They aim to address the rise in land and rental prices in recent years.
The instructions include removing limits on land transactions and development in two important northern areas of Riyadh. This will allow land sales, purchases, divisions, and building permits to be issued.
The first area is 17 square kilometers, located between King Khalid Road and Prince Mohammed bin Saad Road in the west, Prince Saud bin Abdullah bin Jalawi Road in the south, Asmaa bint Malik Street in the north, and Al-Arid District in the east. The second area 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.
Together with previously opened areas covering 48.28 square kilometers, the total land available for development in Riyadh is now 81.48 square kilometers.
The Crown Prince has also given the Royal Commission for Riyadh City the task of providing between 10,000 and 40,000 fully planned residential plots every year for the next five years, depending on market needs.
These plots will be available to married citizens or people over 25 who do not own property. There will be strict rules for these plots, including no resale, rental, or mortgage for 10 years, unless it is for construction. If the land is not developed within this time, it will be returned to the government, and its value will be refunded.
Other measures include quickly implementing changes to the White Land Tax Law within 60 days to increase real estate supply and taking actions within 90 days to ensure fair relationships between landlords and tenants.
Additionally, the General Authority for Real Estate and the Royal Commission for Riyadh City will monitor and control property prices in Riyadh, providing regular reports to ensure market stability and transparency.
Saudi Real Estate Market
Saudi Arabia’s real estate market is expected to grow significantly in 2025, driven by Vision 2030 and economic changes, according to JLL’s Middle East and Africa Market Review and Outlook 2025.
The report showed that although construction projects in the Middle East and Africa slowed in 2024, Saudi Arabia’s construction sector stayed strong, accounting for $29.5 billion of the total construction project awards. There was significant activity in the hospitality, mixed-use, and leisure sectors, with the residential sector doing particularly well, with $7.9 billion in awards.
Published: 1st April 2025
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