In a move aimed at achieving balance in the rental market, the CEO of the General Authority for Real Estate , Engineer Abdullah Al-Hammad, denied the existence of any immediate decisions regarding limiting the rise in rents , stressing that the Authority is working on studying the appropriate controls for this matter, benefiting from international experiences to ensure the desired impact in regulating the relationship between landlords and tenants.
# 4 PM Bulletin | CEO of the General Authority for Real Estate, Eng. Abdullah Al-Hammad: We are carefully studying setting a limit on rent increases to achieve maximum benefit. @REGA_KSA pic.twitter.com/Tc08SruVMt
— Al Arabiya Saudi Arabia (@AlArabiya_KSA) April 1, 2025
Al-Hammad explained in statements to Al-Arabiya that the recent initiatives launched by His Royal Highness Crown Prince Mohammed bin Salman to address rising real estate prices , particularly in Riyadh, are based on three main pillars. These pillars include increasing the supply of real estate by lifting restrictions on land transactions, approving new development plans, and implementing the vacant land tax program.
# 4 PM Bulletin | CEO of the General Authority for Real Estate, Eng. Abdullah Al-Hammad: The goal of the vacant land fee system is to stimulate the real estate supply through its development. @REGA_KSA pic.twitter.com/zPH3qIJSpD
— Al Arabiya Saudi Arabia (@AlArabiya_KSA) April 1, 2025
He pointed out that regulating the contractual relationship and governing the real estate market represent the second pillar, while the third pillar focuses on continuous monitoring of real estate markets, to ensure price stability and achieve sustainable economic growth that gives citizens greater housing opportunities.
To enhance the balance of the real estate sector, His Royal Highness the Crown Prince issued clear directives to provide developed residential land plots to citizens, ranging from 10,000 to 40,000 plots annually over the next five years, according to supply and demand mechanisms and at prices not exceeding 1,500 riyals per square meter. The new procedures also stipulate that applicants must not have previously owned residential land, in addition to other restrictions related to selling or renting the land for a specific period, to ensure its actual use for residential purposes.
The directives also included lifting the suspensions on buying, selling and issuing building permits in a number of areas north of Riyadh, with vast areas reaching 81.48 square kilometers, in order to support urban expansion and increase the housing supply.
# 4 PM Bulletin | CEO of the General Authority for Real Estate, Eng. Abdullah Al-Hammad: “Ejar” has succeeded in documenting the relationship between the parties, and the new decisions will enhance continuous monitoring. @REGA_KSA pic.twitter.com/9kxMb3kpPH
— Al Arabiya Saudi Arabia (@AlArabiya_KSA) April 1, 2025
In a related development, the Crown Prince directed the swift issuance of proposed amendments to the vacant land tax system within 60 days, in addition to implementing regulatory measures within 90 days to govern the relationship between landlords and tenants, ensuring a fair balance between the two parties. The General Authority for Real Estate and the Royal Commission for Riyadh City were also tasked with monitoring real estate prices and submitting periodic reports to guarantee the stability of the Kingdom's real estate market.
