According to the Saudi Press Agency (SPA), Crown Prince Mohammed bin Salman recently ordered several actions to stabilise the real estate market in reaction to the growing cost of land and rent in Riyadh.
Following a study conducted by the Council of Economic and Development Affairs and the Royal Commission for Riyadh City, which evaluated the market’s difficulties in the Saudi capital, the decision was made.
Restrictions on land transactions and development in northern Riyadh will be lifted as part of the directive. According to SPA, the move will make it possible to issue building permits and sell, buy, divide, and subdivide land in specified areas.
A 17-square-kilometre area north of Riyadh that is bounded to the west by King Khalid Road and to the south by Prince Saud bin Abdullah bin Jalawi Road, as well as a 16-square-kilometre area north of King Salman Road that stretches to Abu Bakr Al-Siddiq Road and Al-Qayrawan District, are among the affected areas.
The total area of Riyadh that is currently available for development is 81.48 square kilometres, including the 48.28 square kilometres of previously lifted suspensions. The responsibility of providing planned and developed residential lands for citizens has been placed on the RCRC to improve housing accessibility.
The price per square metre will be limited to 1,500 riyals, and between 10,000 and 40,000 plots will be offered each year for the next five years. Individuals over 25 or married citizens who do not currently own any real estate will be eligible to purchase these plots.
The issuance of this land will be subject to strict regulations that prohibit its sale, rental, or mortgage for ten years, unless it is utilised to finance construction. The government will regain ownership of the land and the buyer will receive reimbursement if it is not developed during this time.
Amendments to the white land fees system, which is a policy intended to promote the development of vacant land, will be introduced within 60 days in order to further stimulate the supply of real estate.
To guarantee a fair balance between landlords and tenants, regulatory measures will also be put into place within ninety days. The responsibility of overseeing and managing real estate prices in Riyadh has been delegated to the General Authority for Real Estate and RCRC.