Based on the study conducted by the Royal Commission for Riyadh City and the Council for Economic and Development Affairs regarding the real estate sector, and the rise in land prices and rents in Riyadh in recent years, Crown Prince Mohammed bin Salman has directed a number of measures to balance the real estate sector. Firstly, the suspension on selling, buying, dividing, and developing land in specific areas of Riyadh has been lifted. This includes the area north of Riyadh bordered by King Khalid Road, Prince Mohammed bin Saad bin Abdulaziz Road, Prince Saud bin Abdullah bin Jiluwi Road, Asma bint Malik Street, and Al-Aridh neighborhood covering 17 square kilometers, as well as the area north of King Salman Road bordered by Abu Bakr Al-Siddiq Road, Al-Aridh neighborhood, Prince Khalid bin Bandar Road, and Al-Qirawan neighborhood covering 16.2 square kilometers. Additionally, two previously suspended areas totaling 48.28 square kilometers have also been released, bringing the total area released to 81.48 square kilometers.
Secondly, the Royal Commission for Riyadh City will provide planned and developed residential lands for citizens, ranging from 10,000 to 40,000 plots annually for the next five years, depending on demand and supply, at prices not exceeding 1500 Saudi Riyals per square meter. These lands will be allocated to married citizens or individuals over 25 years old, provided they do not currently own another property, meet other specified criteria, and do not sell, rent, mortgage, or make any transactions with the land for 10 years unless it’s for financing the construction of the land. If the land is not developed within this timeframe, it will be reclaimed and the value returned.
Thirdly, urgent regulatory measures will be taken to propose amendments to the White Lands Fees System within 60 days to strengthen the real estate supply.
Fourthly, necessary regulatory actions will be taken within 90 days to regulate the relationship between landlords and tenants to ensure a balance of interests.
Fifthly, the General Authority for Real Estate and the Royal Commission for Riyadh City are tasked with monitoring and tracking property prices in Riyadh and submitting regular reports on the same.
