Crown Prince takes action to balance real estate sector in Riyadh

Saudi Crown Prince Mohammed bin Salman 

Saudi Crown Prince Mohammed bin Salman directed the implementation of several measures to balance the real estate market in Riyadh amid higher land prices and rentals.

He lifted suspension on transactions such as buying, selling, subdivision, and issuing building permits, as well as approving plans for the land located north of Riyadh. This area is bordered by King Khalid Road and the extension of Prince Mohammed bin Saad bin Abdulaziz Road (formerly known as Al-Khair Road) to the west, Prince Saud bin Abdullah bin Jalawi Road to the south, Asmaa bint Malik Street to the north, and Al-Arid District to the east, covering an area of 17 square kilometers.

Additionally, suspension was lifted for land located north of King Salman Road, which is bordered by Abu Bakr Al-Siddiq Road and Al-Arid District to the east, Prince Khalid bin Bandar Road to the north, and Al-Qirawan District to the west, covering 16.2 square kilometers.

This comes in addition to two previously reinstated areas totaling 48.28 square kilometers, bringing the total area where the suspension has been lifted in Riyadh to 81.48 square kilometers, as per the attached map.

The Royal Commission for Riyadh City (RCRC) will provide planned and developed residential lands for citizens, ranging from 10,000 to 40,000 plots annually over the next five years, based on market supply and demand. The price per square meter should not exceed 1,500 SAR, and the land will be allocated to married citizens or those over 25 years old, provided they do not own any other real estate property.

Additional conditions include prohibiting the sale, lease, mortgage, or any other transaction involving the land for 10 years, except for mortgages intended to finance construction. If the land remains undeveloped within this period, it will be reclaimed, and the original purchase price will be refunded.:

The necessary legal procedures must be taken to urgently amend the White Land Tax Law within a maximum of 60 days, ensuring an increase in real estate supply.

Regulatory actions must be taken within 90 days to establish a balanced relationship between landlords and tenants, ensuring fair terms for both parties.

The Real Estate General Authority (REGA) and RCRC are directed to oversee real estate prices in Riyadh through periodic reports.