Saudi Minister of Finance: The government has tools to restore balance to the real estate market in Riyadh

Mohammed bin Abdullah Al-Jadaan, Minister of Finance, affirmed that the government has the ability to use the tools available to it to restore balance to the real estate market in Riyadh, whether through regulations, policies, or procedures, to enhance the supply of land and residential and commercial properties to achieve economic growth and create more jobs. He explained that the generous directives reflect the leadership’s priorities in providing adequate housing for citizens and achieving a decent life.

According to Al-Ekhbariya, Al-Jadaan added that the announced real estate balance decisions will limit market fluctuations and contribute to controlling rising real estate prices in the capital. Furthermore, they will encourage various business sectors and enhance their competitiveness, in line with the objectives of the National Housing Program. He continued: “The abundance of land supply will contribute to achieving a balance between supply and demand, ensuring price stability, meeting citizens’ needs, and limiting unjustified price increases.”

The Minister of Finance continued: “The statement focused on a set of targets, the first of which is the citizen, particularly the most needy citizens, and also set controls to limit the leakage of support to undeserving groups. The statement aimed to immediately enhance real estate supply by lifting the suspensions north of Riyadh.”

It is noteworthy that Prince Mohammed bin Salman, Crown Prince and Prime Minister, directed measures to ensure balance in the real estate sector. His directives included:

First: Lifting the suspension on transactions through sales, purchases, divisions, and subdivisions, issuing building permits, and approving plans for the land located north of Riyadh, which is bordered to the west by King Khalid Road and the extension of Prince Mohammed bin Saad bin Abdulaziz Road (formerly Al-Khair Road), to the south by Prince Saud bin Abdullah bin Jalawi Road, to the north by Asma bint Malik Street, and to the east by Al-Aridh neighborhood, with an area of ​​17 square kilometers. The land located north of King Salman Road is bordered to the east by Abu Bakr Al-Siddiq Road and Al-Aridh neighborhood, and to the north by Prince Khalid bin Bandar and, to the west, Al-Qayrawan neighborhood, covering an area of ​​16.2 square kilometers. This is in addition to the two areas whose construction bans were recently lifted, totaling 48.28 square kilometers. This brings the total area of ​​Riyadh’s lifted construction ban to 81.48 square kilometers, according to the attached map.

Second: The Royal Commission for Riyadh City will work to provide planned and developed residential land to citizens, with a number ranging from 10,000 to 40,000 plots annually over the next five years, depending on supply and demand. This is at prices not exceeding 1,500 riyals per square meter for married citizens or those over the age of 25. This is provided that the applicant does not have any previous real estate ownership and meets all other requirements, including not selling, leasing, mortgaging, or otherwise disposing of the land within 10 years, except for the purpose of financing the construction of the land. If the land is not built upon within this period, the land will be reclaimed and its value will be reimbursed. Third: Take the necessary regulatory measures to issue the proposed amendments to the White Land Tax System urgently, within a period not exceeding (60) days, to ensure enhanced real estate supply.

Fourth: Take the necessary regulatory measures within a period not exceeding (90) days to regulate the relationship between landlords and tenants, ensuring a balance between the interests of all parties.

Fifth: Assign the General Authority for Real Estate and the Royal Commission for Riyadh City to monitor and control real estate prices in Riyadh and submit periodic reports.