The real estate market in Saudi Arabia is undergoing a radical transformation driven by the directives of His Highness Crown Prince Mohammed bin Salman, which aim to rebalance the sector and boost the supply of housing at fair prices. With land prices and rents rising in recent years, these directives came as a strategic step to find sustainable solutions that support the Kingdom's Vision 2030 and achieve the aspirations of citizens and real estate investors alike.

Stimulating real estate supply and regulating the market

The directives of His Highness the Crown Prince are a new start for the real estate sector, as the moratorium on the disposal of land located in the north of Riyadh city, which covers a total area of 81.48 square kilometers, has been lifted. This step will contribute to providing new areas for real estate development, boosting supply in the market and limiting speculation that led to high prices during the past years.

Providing affordable land for citizens

His Highness the Crown Prince directed the Royal Commission for Riyadh City to work on providing between 10 to 40 thousand residential plots annually, at prices not exceeding 1500 riyals per square meter, with controls to prevent real estate speculation, such as prohibiting the sale or leasing of land for 10 years, except in cases of housing construction. This initiative will help enable citizens to own affordable housing, contributing to improving the quality of life and achieving social stability.

This initiative will help enable citizens to own affordable housing, thus contributing to improving the quality of life and achieving social stability.

Amendments to White Land Fees

As part of efforts to boost the real estate supply, His Highness the Crown Prince instructed to quickly take the necessary legal procedures to amend the White Land Fees Law within 60 days, which will incentivize real estate developers to develop their land instead of keeping it unutilized. This step will help curb rising prices and increase the housing supply, which will reflect positively on the market balance.

Regulating the relationship between landlords and tenants

<Due to the fluctuations in rents, the directives came to regulate the relationship between landlords and tenants within a period not exceeding 90 days. These measures will balance the interests of both parties, promoting stability in the rental market and preventing unjustified price hikes.

To avoid any unjustified inflation in real estate prices, the General Real Estate Authority and the Royal Commission for Riyadh City have been tasked with monitoring prices and submitting periodic reports, ensuring market stability and limiting speculation that negatively affects consumers.

Implications of the directives on the future of real estate in the Kingdom

<These directives open new horizons for the real estate sector, as they will contribute to attracting more local and foreign investments, achieving a balance between supply and demand, reflecting on price stability and achieving sustainable development. It will also help achieve the goals of Vision 2030, which seeks to raise the rate of homeownership and improve the quality of life."

The directives of His Highness the Crown Prince also represent an important milestone for the real estate sector. <The Crown Prince's directives represent a clear roadmap for the development of the Saudi real estate sector, balancing the interests of citizens and investors, and supporting economic and social stability. With the implementation of these reforms, the Saudi real estate market is expected to witness a new era of sustainable growth and structural development that meets the aspirations of all stakeholders.