Riyadh’s real estate sector is set for a major transformation following Crown Prince Mohammed bin Salman’s directive to curb rising land prices and rental costs. These measures are aimed at enhancing market stability and accessibility by allowing the sale, purchase, division, and subdivision of land, as well as the issuance of building permits on the demarcated land.
The directive includes:
Lifting Land Restrictions
The government has opened up a 17 square kilometer section north of Riyadh as well as a 16.2 square kilometer area north of King Salman Road, this demarcated land together with previously lifted suspensions totals 81.48 square kilometers for development in Riyadh.
Boosted Housing Supply
Between 10,000 and 40,000 residential plots will be allocated annually over the next five years at a capped price of 1,500 riyals per square meter. Eligibility is restricted to married citizens and individuals over 25 who do not own real estate.
Regulatory Safeguards
Issued plots cannot be resold, rented, or mortgaged for 10 years unless used for construction. Unused land within this period will revert to the government.
White Land Fees Reform
Amendments to the land tax policy will be introduced within the next 60 days to encourage development.
Tenant and Landlord Protections
New regulations will be implemented within the next 90 days to ensure fair market conditions.
Price Monitoring
The General Authority for Real Estate and Royal Commission for Riyadh City will oversee market trends and enforce price controls.
These measures are expected to make housing more affordable and accessible, stabilizing Riyadh’s booming real estate market.
Stay updated as new policies unfold.
How Al Tamimi can help?
If you have any queries related to the above alert, please feel free to contact the key contact.
Key Contact
Andrew Thomson, Partner, Head of Real Estate, a.thomson@tamimi.com