Riyadh (Agencies): In a move to address the rising cost of land and rental prices in Riyadh, Saudi Crown Prince Mohammed bin Salman has issued a series of directives aimed at stabilizing the real estate market, the Saudi Press Agency reported.
The decision follows a study conducted by the Royal Commission for Riyadh City (RCRC) and the Council of Economic and Development Affairs, which analyzed the challenges facing the capital’s housing sector. A key measure includes lifting restrictions on land transactions and development in northern Riyadh, allowing the sale, purchase, division, and subdivision of land, as well as the issuance of building permits.
The affected areas cover a total of 81.48 square kilometers, including a 17-square-kilometer section north of Riyadh and a 16.2-square-kilometer zone north of King Salman Road. The initiative is expected to boost housing availability by providing between 10,000 and 40,000 planned residential plots annually for the next five years, at a capped price of 1,500 riyals per square meter. These plots will be allocated to married citizens or individuals over 25 who do not own property.
Strict regulations will govern the allocation, prohibiting resale, rental, or mortgage for 10 years—except for financing construction. If the land remains undeveloped within this period, ownership will revert to the government, with reimbursement to the buyer.
Additionally, the government will introduce amendments to the white land fees system within 60 days to encourage the development of vacant plots, and new regulatory measures will be implemented within 90 days to ensure fair market practices between landlords and tenants.
The General Authority for Real Estate and the RCRC will oversee property price trends and submit periodic reports to evaluate the effectiveness of these measures. The directives aim to promote housing affordability, market stability, and sustainable urban development in Riyadh.