Saudi Crown Prince Launches Major Real Estate Reforms to Curb Land Prices in Riyadh

In a landmark move to stabilise the soaring real estate market in Riyadh, Saudi Crown Prince Mohammed bin Salman has announced sweeping reforms aimed at reducing land prices and controlling rental costs in the capital city.

Following an extensive study by the Royal Commission for Riyadh City (RCRC) and the Council of Economic and Development Affairs, the Crown Prince directed key measures to address the escalating housing crisis in Riyadh.

Opening Up Restricted Land for Development

A central part of the reforms includes lifting development restrictions on two major northern areas of Riyadh, covering a combined area of 33.2 square kilometres. These zones, previously limited in real estate transactions, will now permit the sale, purchase, and subdivision of land, along with the issuance of building permits.

The first area spans 17 square kilometres, bordered by King Khalid Road and Prince Saud bin Abdullah bin Jalawi Road, while the second area covers 16.2 square kilometres north of King Salman Road, extending to Abu Bakr Al Siddiq Road and Al Qayrawan District.

This initiative increases the total land designated for residential development to 81.48 square kilometres, including previously unlocked areas.

 

Land Price Cap and Housing Allocation

As part of the new policies, the RCRC has been tasked with providing 10,000 to 40,000 residential plots annually over the next five years. Each plot will be sold at a capped price of 1,500 riyals per square meter, available exclusively to married Saudi citizens or individuals aged 25 years and above who do not already own property.

Strict property regulations will apply to these plots:

• Resale, rental, or mortgaging will be prohibited for 10 years.
• Exemptions will only apply if the land is used to finance construction.

• If left undeveloped within the set period, ownership will revert to the government, and the buyer will be refunded.

   

Amendments to White Land Tax and Rental Market Regulations

The Crown Prince has also ordered amendments to the White Land Tax Law within 60 days, intended to stimulate development on vacant lands. Additionally, new regulatory measures will be introduced within 90 days to ensure fairness in the rental market, balancing the rights of landlords and tenants.

The General Authority for Real Estate and the Royal Commission for Riyadh City will monitor the impact of these reforms and submit regular reports to maintain long-term real estate market stability.

These proactive measures reflect Saudi Arabia’s commitment to creating a more transparent, accessible, and sustainable real estate sector under the Kingdom’s Vision 2030 objectives.

 

 

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