HRH Crown Prince Directs Measures to Balance Riyadh’s Real Estate Sector

Following the Royal approval, HRH Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, has ordered key measures aimed at balancing Riyadh’s real estate sector. This directive is based on studies conducted by the Royal Commission for Riyadh City (RCRC) and the Council of Economic and Development Affairs concerning the sector and addresses the rising land and rental prices observed in the capital in recent years.

Firstly: The lifting of restrictions on disposal through sale, purchase, partitioning, or subdivision, as well as restrictions on the issuance of building permits and the approval of plans for specific land parcels located north of Riyadh city. These areas include:

• An area of 17 square kilometers, bordered by King Khalid Road and the extension of Prince Mohammed bin Saad bin Abdulaziz Road (formerly Al-Khair Road) to the west, Prince Saud bin Abdullah bin Jalawi Road to the south, Asma bint Malik Street to the north, and the Al-Arid neighborhood to the east.
• An area of 16.2 square kilometers, located north of King Salman Road, bordered by Abi Bakr Al-Siddiq Road and the Al-Arid neighborhood to the east, Prince Khalid bin Bandar Road to the north, and the Al-Qayrawan neighborhood to the west.

This adds to the two areas totaling 48.28 square kilometers where restrictions were recently lifted, bringing the total area in Riyadh city for which restrictions have been lifted to 81.48 square kilometers, according to the accompanying map.

Secondly: The RCRC is directed to work on providing citizens with between 10,000 and 40,000 planned and developed residential plots, at prices capped at SAR 1,500 per square meter, each year for the next five years, adapting the annual number based on supply and demand dynamics. Eligibility is limited to married citizens or those aged over 25, provided they have no prior real estate ownership and meet other established controls. Furthermore, the land cannot be sold, leased, mortgaged (except for financing its construction), or otherwise disposed of for 10 years. Additionally, if the land is not developed within this period, it will be recovered, and its initial value reimbursed to the recipient.

Thirdly: Taking the necessary regulatory measures to urgently issue the proposed amendments to the White Land Tax Law, within a period not exceeding sixty (60) days, in a manner designed to boost real estate supply.

Fourthly: Taking the necessary regulatory measures within a period not exceeding ninety (90) days to regulate the landlord-tenant relationship, ensuring a balance of interests between the parties involved.

Fifthly: Assigning the Real Estate General Authority (REGA) and the Royal Commission for Riyadh City (RCRC) the task of monitoring property prices in Riyadh city and submitting periodic reports on this respect.