Riyadh – Amlak
A recent study prepared by the Riyadh Development Authority, titled “Supply and Demand Indicators for the Real Estate Sectors in Riyadh in 1433 AH,” revealed that the supply-demand balance for all real estate sectors in the city of Riyadh is considered good compared to other cities, and noted that the land allocated under the land-use plan will be sufficient to meet future demand even beyond 1450 AH, provided that the policies of the Comprehensive Strategic Plan for the City of Riyadh are adhered to.
Residential Land
The study showed that the area of land used for residential purposes in Riyadh increased by 20 percent between 1430 and 1433 AH, amounting to 27 square kilometers, accounting for the largest share of total land use at 30 percent. Vacant land (both developed and undeveloped) continues to account for 78 percent of Riyadh’s area within the capital’s development boundaries.It was emphasized that the city of Riyadh is a hub for government and private economic activities and uses, with commercial activities there accounting for 31 percent of the Kingdom’s total commercial and industrial activities, Riyadh’s economy derives its strength and stability from the robustness of the Saudi economy, in which the real estate and construction sector accounts for approximately 14 percent of gross domestic product, The study also revealed a surplus of undeveloped residential plans estimated at 490 square kilometers in Riyadh, while current demand represents only 30 percent of the total area of those plans, Demand is projected to reach approximately 510,000 housing units in Riyadh by 1450 AH, while the number of housing units of all types in the city stands at 960,700, and future demand is estimated at approximately 30,000 units annually through 1450 AH, for a total demand of 510,000 residential units by 1450 AH.
Regulations and Conditions
The study called for the establishment of regulations and requirements to govern the activities of real estate agencies, ensuring that their owners obtain the necessary licenses, and to comply with the regulations issued by the Ministry of Commerce and Industry in this regard. It emphasized encouraging the development of approved but undeveloped residential plans and giving them priority in the provision of public utilities, particularly government-granted land plots.
Housing Support
The study predicted that government housing support measures and regulations governing the real estate sector would contribute to economic recovery and create the desired balance between supply and demand in the major real estate sectors, Among the most notable of these decisions is the Ministry of Housing’s allocation of 250 billion riyals to build 500,000 housing units in the Kingdom.