In a strategic move to tackle soaring property prices and housing shortages, Crown Prince and Prime Minister Mohammed bin Salman has issued a series of powerful directives aimed at restoring balance to Saudi Arabia’s real estate market.

Backed by Finance Minister Mohammed Al-Jadaan, these initiatives reflect the leadership’s firm commitment to securing affordable housing, enhancing land supply, and protecting citizens from speculative market practices. With regulatory reforms and new development plans, the Kingdom is taking swift steps to ensure a stable, fair, and citizen-focused real estate environment.

Utilizing Government Tools to Achieve Market Balance

According to Al-Jadaan, the Crown Prince’s directives demonstrate the government’s ability to leverage various tools — including legal, regulatory, and policy measures — to restore equilibrium in the housing market. The comprehensive approach includes expanding the availability of both residential and commercial properties, stimulating economic growth, and generating employment opportunities.

“The government’s focus is on ensuring a fair and functioning real estate sector where supply and demand are balanced, and price inflation is kept in check,” Al-Jadaan stated.

Addressing Rising Land Prices and Limited Supply

The directives come amid growing concerns over soaring land prices and rental costs in Riyadh. The Crown Prince responded by issuing five major measures aimed at addressing the root causes of market imbalance. These include:

• Lifting the suspension on sales, purchases, and land divisions
• Reinstating building permits and approving land development plans
• Introducing tighter regulatory controls to prevent misuse of government support
• Amending key real estate laws, such as the Law of White Land Tax
• Establishing a more structured landlord-tenant framework
  

These measures are targeted toward enhancing market transparency and ensuring that benefits reach the most deserving segments of society.

Focus on Citizens and Affordable Land Access

Al-Jadaan highlighted that the real estate reforms prioritize Saudi citizens, particularly those in need of housing. One of the major initiatives involves lifting restrictions in northern Riyadh, enabling the immediate availability of land for residential development.

The Royal Commission for Riyadh City will now offer between 10,000 and 40,000 fully developed land plots annually over the next five years. These plots will be priced at no more than SR1,500 per square meter and will be allocated to Saudi citizens who meet the following criteria:

• Must be married or over the age of 25
• Must not own any other real estate
• Must commit not to sell, lease, or mortgage the property for 10 years (except in cases where mortgaging is necessary to finance construction)

Failure to develop the land within the 10-year timeframe will result in the land being reclaimed, with the value returned to the applicant.

Tackling Price Manipulation and Market Speculation

To further ensure transparency and fairness, the General Authority for Real Estate and the Royal Commission for Riyadh City have been directed to monitor real estate prices in Riyadh. They are tasked with submitting regular reports to the leadership to prevent artificial inflation and speculation.

Al-Jadaan said these entities will play a pivotal role in maintaining oversight and implementing government strategies effectively.

White Land Tax and Rental Regulation

The Crown Prince has also ordered urgent amendments to the Law of White Land Tax, a measure originally designed to discourage hoarding of undeveloped urban land. The goal is to boost land development and discourage speculative investment that inflates property values without contributing to housing availability.

These amendments are expected to be finalized within 60 days, providing a fast-track mechanism to increase land supply across key cities.

In tandem, new landlord-tenant regulations will be introduced within 90 days to create a balanced legal framework. These regulations aim to protect the rights of both parties, prevent exploitative practices, and stabilize the rental market.

Long-Term Goals: Sustainable Urban Development

The set of reforms aligns with Saudi Arabia’s Vision 2030 and its goals of sustainable development, enhanced quality of life, and diversified economic growth. Al-Jadaan noted that while the short-term measures will address immediate imbalances, the long-term objectives include creating a real estate ecosystem that is resilient, citizen-focused, and investment-friendly.

Crown Prince Mohammed bin Salman’s decisive intervention in the real estate sector underlines the Saudi leadership’s strategic vision for urban development and social welfare. Through comprehensive and targeted reforms, the government is moving swiftly to tackle the root causes of real estate market volatility, ensuring that housing remains accessible and affordable for Saudi citizens.

With clear timelines, firm regulatory measures, and a citizen-first approach, these new directives represent a major step forward in restoring balance to the Kingdom’s real estate sector and reinforcing public trust in national development efforts.