Saudi Arabia Takes 5 Measures to Curb Rising Real Estate Prices in Riyadh

Crown Prince Mohammed bin Salman directed to take a number of measures to balance the real estate sector due to the rise in land prices and rents in the city of Riyadh in the past years, according to the Saudi Press Agency.

The first measure is to lift the suspension of sale, purchase, division and retail, issuance of building licenses and approval of plans for the land located north of the city of Riyadh.

This is in addition to the two areas that have been recently lifted and have an area of 48.28 square kilometers, so that the total suspension has been lifted in Riyadh is 81.48 square kilometers, according to the accompanying map.

The second measure is for the Royal Commission for the City of Riyadh to work on providing planned and developed residential land for citizens with a number of between 10 and 40 thousand plots per year during the next five years according to supply and demand, and at prices not exceeding 1500 riyals per square meter.

To be available to married citizens or those over the age of 25 years, provided that there is no previous other real estate property for the applicant and the rest of the other controls are met, including not sold, renting, mortgaged or disposed of in any form of disposal within 10 years except for the mortgage for the purposes of financing the construction of that land, and if it is not built during this period, the land shall be recovered and its value will be restored.

Bin Salman also directed a third action, which is to take the necessary regulatory measures to issue the proposed amendments to the land fees system urgently within a period not exceeding two months, to ensure the enhancement of the real estate supply.

Also, taking the necessary regular procedures within a period not exceeding 3 months to control the relationship between lessors and tenants to ensure a balance between the interests of the parties.

He also directed the assignment of the General Authority for Real Estate and the Royal Commission for the City of Riyadh to monitor and control the prices of real estate in Riyadh and submit periodic reports.

Saudi Crown Prince Mohammed bin Salman

Saudi Arabia