In a significant move to address the soaring land prices and rental costs in Riyadh, Saudi Crown Prince Mohammed bin Salman has approved a set of transformative real estate reforms aimed at stabilising the housing market in the capital.
The decision follows a comprehensive evaluation conducted by the Royal Commission for Riyadh City (RCRC) in collaboration with the Council of Economic and Development Affairs, which examined the root causes of the ongoing housing affordability crisis.
Strategic Land Unlocking in Northern Riyadh
As part of the reforms, the Crown Prince has lifted restrictions on land transactions and development across two key areas in northern Riyadh, opening a combined 33.2 square kilometers of land for immediate development. The first area spans 17 square kilometers between King Khalid Road and Prince Saud bin Abdullah bin Jalawi Road, while the second encompasses 16.2 square kilometers north of King Salman Road, extending toward Abu Bakr Al Siddiq Road and the Al Qayrawan District.
This land unlock adds to an earlier release of 48.28 square kilometers, bringing the total new developable land to 81.48 square kilometers, reflecting the government's accelerated efforts to boost housing supply.
Affordable Housing Supply Mandate
Under the new directive, the RCRC has been tasked with delivering between 10,000 and 40,000 residential plots each year for the next five years. These plots will be made available at a fixed price of 1,500 Saudi riyals per square meter, specifically targeting married Saudi citizens or individuals over 25 years of age who do not currently own property.
To ensure long-term housing stability and prevent market speculation, the plots will come with strict usage conditions. Resale, rental, or mortgaging of the land will be prohibited for 10 years, unless the mortgage is directly used to fund construction. If the land remains undeveloped within this timeframe, ownership will revert to the state, with the original buyer compensated accordingly.
New Legal Framework and Price Monitoring
The Crown Prince also ordered revisions to the White Land Tax Law, intended to discourage land hoarding and accelerate development. The amended law is expected to be implemented within 60 days.
In a further effort to balance tenant and landlord rights, regulatory reforms for the rental market will be introduced within 90 days, aiming to ensure equitable access and fair pricing for all stakeholders.
The General Authority for Real Estate, alongside the Royal Commission for Riyadh City, will oversee real-time market monitoring, submitting regular updates to evaluate the success of these interventions.
A Long-Term Vision for Housing Sustainability
These bold measures reflect the Kingdom’s growing focus on urban planning, housing accessibility, and market sustainability as part of its broader economic diversification agenda. With Riyadh positioned as a central hub under Vision 2030, the government is taking decisive steps to ensure that the real estate market remains inclusive, transparent, and resilient.
