Riyadh's Rising Rent Crisis: Crown Prince Announces Directives To Stabilise Housing Costs
Crown Prince Mohammed bin Salman of Saudi Arabia has initiated a series of actions aimed at stabilizing the real estate market in Riyadh, according to the Saudi Press Agency. This initiative comes as a result of increasing land and rental prices in the region.
The Royal Commission for Riyadh City, along with the Council of Economic and Development Affairs, conducted a comprehensive study highlighting the market's challenges. These steps are expected to bring about significant changes in the real estate sector of the capital.
Remove restrictions on land dealings and development
Restrictions have been lifted in northern Riyadh to allow the sale, purchase, division, and subdivision of lands, as well as the issuance of building permits. This applies to a 17-square-kilometer area near King Khalid Road, a 16.2-square-kilometer zone extending to Al-Qayrawan District, and previously restricted areas, totaling 81.48 square kilometers now open for development.
Distribute residential lands for housing accessibility
The Royal Commission for Riyadh City (RCRC) will provide 10,000 to 40,000 residential plots annually for the next five years. These plots, capped at 1,500 riyals per square meter, are reserved for married individuals or those over 25 who do not own property, encouraging affordable homeownership.
Set conditions to prevent speculation
Recipients of residential plots cannot sell, rent, or mortgage them for 10 years to ensure development rather than profiteering. If plots remain undeveloped after a decade, they revert to government ownership, with buyers refunded their original payment.
Revise the white land fees system
Within 60 days, the white land fees system—designed to encourage the development of unused lands—will be amended to enhance its effectiveness, pushing landowners to utilize or develop their properties and increase market supply.
Adjust landlord-tenant regulations
Within 90 days, regulatory changes will be implemented to create a balanced and fair relationship between landlords and tenants, addressing rental market challenges and promoting equitable housing conditions.
Monitor and stabilise property prices
The General Authority for Real Estate, working with the RCRC, will oversee Riyadh’s property prices, ensuring stability and fairness. Regular reports will track the progress and impact of these measures, maintaining transparency and accountability.
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