Many real estate experts and specialists are still searching for the real reasons behind the continued, staggering rise in land and housing prices—a rise that lacks any logical justification or basis—especially for properties located in neighborhoods that are attractive to residents, which are the destinations of choice for the upper classes and the affluent, such as northern Riyadh; it is inconceivable that the price of some residential villas in the northeast of King Salman Road would reach 2.750 million riyals for a villa with an area of no more than 300 square meters!! (Real Estate Prices).
The insane and unacceptable rise in real estate prices coincided with increased awareness and vigilance on the part of government agencies—may God preserve them—through their monitoring of the market and implementation of Vision 2030 programs. This led them to intervene to curb excessive price hikes and establish controls through regulations and policies to stabilize prices, hence the wise decision to suspend certain development projects in northern Riyadh and to halt Project No. 3496 and the projects included therein. The importance of this decision lies in the fact that it reflects officials" awareness of the realities of the real estate market, and the transparency with which it was issued contributes to greater communication.
The decision also addressed some potential loopholes; many deeds were revoked because they were not based on sound legal grounds, But it did not stop there: the remedial decision, issued by royal decree, called for the establishment of a joint-stock company affiliated with the Public Investment Fund, with landowners and citizens as shareholders, to develop these lands in a world-class, civilized, and development-oriented manner thatenhance citizens" quality of life and well-being. This was a swift solution, free from the red tape, procedures, and government requirements that tend to slow down the pace of growth. Landowners and investors must not use the suspension of these plans to create a scarcity that drives up prices, which burdens citizens and hinders urban development. We also hope that the announcement of the lifting of the suspension on these plans —once the underlying causes have been resolved—will lead to a drop in prices to a reasonable level, thereby easing the inflationary pressures that have long plagued the real estate market.
Rectifying the Status of Many Development Plans
In conclusion, we hope that these decisions will achieve their objectives of rectifying the status of many development plans and expediting their availability to citizens, thereby contributing to an increase in homeownership rates and stimulating economic growth across various sectors such as construction, factory operations, and increased output and local content, We also hope that the relevant authorities will inventory all development plans, issue a timeline for their development, and facilitate the process of obtaining permits, because the primary goal of these plans is to transform them into residential neighborhoods, not to trade their land for the purpose of speculation, which has greatly harmed citizens and the market.
To the Editor-in-Chief:
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