Real estate specialists confirmed to Okaz that Riyadh is witnessing a broad transformation in taming real estate prices, after years in which housing was associated with exorbitant increases and long waiting periods to obtain land, a loan, or the completion of services for development plans. Today, ownership is closer to young people and newly formed families, within integrated urban environments with services and in locations that were previously considered high-cost and difficult to access.
They explained that this transformation was driven by a package of regulatory and developmental measures, most notably the imposition of fees on white and vacant land, and the offering of residential land within the urban area to those who have not previously owned land at prices starting from 1,500 riyals per meter in Riyadh, in addition to opening new urban areas supported by infrastructure and services, which contributed to raising the supply of real estate, controlling price balances and turning raw land into viable and habitable neighborhoods.
They pointed out that with this transformation, the Saudi model for addressing the housing crisis began to attract attention as a recipe applicable to other countries suffering from housing gaps and sharp price increases, especially after it shortened the long waiting years and raised the chances of ownership at an early age, within a more high-quality and sustainable urban environment.
Real estate balance
Real estate expert Khaled Shaker Al-Mubayyad confirmed to Okaz that the real estate balance in Saudi Arabia represents an advanced model for addressing the housing crisis by increasing supply and providing real estate products at fair prices, noting that providing real estate at a price of approximately 1,500 riyals per meter contributes to raising ownership opportunities and achieving a real balance between supply and demand.
He explained that these measures will reduce hoarding and speculation, and push the market towards actual development, which will positively affect price stability and improve the quality of real estate products.
He added that the impact of real estate balance extends to the economy as a whole by easing the burden of housing on families, supporting purchasing power, stimulating investment, and enhancing economic stability in line with the objectives of Saudi Vision 2030.
Market reforms
In the latest market reforms, the Ministry of Municipalities and Housing recently announced the adoption of the executive regulations for annual fees on vacant properties. According to the regulations, fees for vacant properties will be collected after 6 months of vacancy, up to 5% annually of the building's value when vacancy criteria are met. The scope of fees for vacant properties will be determined according to supply, demand, and price indicators.
The most prominent decisions and measures aimed at readjusting the market included launching a package to achieve real estate balance in Riyadh, which included lifting the suspension on large areas of land, and allocating between 10,000 and 40,000 residential plots annually at prices not exceeding 1,500 riyals per meter, with controls to limit speculation.
Facilitating ownership
Qasim Al-Falih, who is interested in real estate, said: “The Real Estate Balance Program in Riyadh addressed a major challenge for citizens who are tenants, large families, and those about to get married, after it provided opportunities to own property within the urban area and in prime locations at a price of up to 1,500 riyals per meter.”.
He added: “The Saudi real estate model has contributed to making homeownership easier for young people compared to previous years, when grants and loans took a long time, while today the citizen is able to own a home at an early age and with comfortable terms.”.
Al-Falih stressed that what has been achieved reflects the keenness of Crown Prince and Prime Minister Prince Mohammed bin Salman to address the housing issue and reduce prices from levels that reached 12 and 13 thousand riyals per meter to more reasonable prices, and mentioned that the Saudi experience has become a matter of interest to other countries.
He advised those with modest funds who wish to invest to head to the outskirts of Riyadh, stressing that the balanced projects within major cities have had a positive impact on the peripheries, making them promising for the future. He pointed out that real estate investors from Gulf countries have begun to invest in the Saudi market.
Practical model
Real estate expert Bandar Al-Dahik said: “What Riyadh is witnessing today represents a practical model for addressing the housing crisis, after the solution moved from the stage of theorizing to actual implementation on the ground.”.
He explained that infrastructure development projects within vital locations in the city reflect a real trend towards controlling price balances by raising the readiness of land that can be developed and inhabited, instead of being satisfied with pumping out distant plans that lack services.
He added that the real estate crisis was not related to the scarcity of land as much as it was related to the scarcity of actually developed land, which is what the state is working on today, through road, electricity, drainage and communications networks, in order to transform raw land into urban environments ready for life and investment.
Al-Dahik pointed out that government decisions have reorganized the relationship between supply and demand, and have contributed to creating more sustainable price balances, stressing that Riyadh has become a different model in managing the real estate file, which is based on long-term planning, accelerating implementation and raising the quality of life in a way that enhances ownership opportunities.
The measures included amending the white land fees and imposing fees on vacant properties within the urban area, in addition to extending the affordable mortgage program for three years, which allows financing of up to 85% of the value of the home, in addition to amending the conditions of housing support by reducing the age of eligibility to 20 years, and canceling some restrictions related to divorced and widowed women.
On the regulatory side, new controls were approved for the relationship between landlords and tenants in Riyadh, including freezing residential and commercial rent increases for five years, with mandatory documentation of contracts through the “Ejar” network. The system for non-Saudis to own real estate within specific geographical areas was also updated.
The Royal Commission for Riyadh City launched the “Real Estate Balance” platform to receive applications from citizens wishing to obtain residential land, while the General Authority for Real Estate launched the “Instant Licensing” service for “off-plan sales” projects, after significantly reducing licensing procedures and requirements.
New regulations
Real estate specialists confirmed to “Okaz” that Riyadh is witnessing a wide transformation in taming real estate prices, after years in which housing was associated with exorbitant increases and long waiting periods to obtain land, loans, or complete services for developments. Today, ownership has become more accessible to young people and newly formed families, within integrated urban environments and in locations that were previously considered high-cost and difficult to access.
They explained that this transformation was driven by a package of regulatory and developmental measures, the most notable of which is the imposition of fees on vacant and undeveloped land, and the offering of residential land within urban boundaries for those who have never owned it before, with prices starting from 1,500 riyals per square meter in Riyadh. Additionally, new urban areas have been opened, supported by infrastructure and services, which contributed to increasing the real estate supply, stabilizing price balances, and transforming raw land into livable and residential neighborhoods.
They indicated that with this transformation, the Saudi model for addressing the housing crisis is attracting attention as an applicable recipe in other countries suffering from housing gaps and sharp price increases, especially after it shortened long waiting years and raised ownership opportunities at an early age, within a more quality and sustainable urban environment.
Real Estate Balance
Real estate expert Khalid Shakir Al-Mubayyid confirmed to “Okaz”
