"Saudi Arabia Enhances Home Ownership with New Real Estate Policies", Says Al-Jadaan

Saudi’s Minister of Finance Mohammed Al-Jadaan has enunciated the new kingdom's real-estate policies that seek to promote home ownership among citizens. Such reforms were introduced following the introduction of a comprehensive study conducted by the Royal Commission for Riyadh City (RCRC) and the Council of Economic and Development Affairs in March. It has the city of Riyadh under review regarding land prices and rental pressures with regulatory measures to ensure market stability in addition to the lifting land transaction restrictions in the specified areas of northern Riyadh.

According to Al-Jadaan, the directives are in line with Crown Prince Mohammed bin Salman's vision of increasing ownership rates up to 70 percent by 2030. He indicated that the policies will help control fluctuations and inflation in the real estate market toward an optimal economy in general.

Affordable Housing Programs

The plan allows for land sales, subdivisions, and building permits in two northern Riyadh zones covering 33.2 sq. km, bringing the total available land for development to 81.48 sq. km when combined with previous releases.

Additionally, Al-Jadaan anticipates reduced price pressures as developers expand projects in response to greater land availability. The RCRC will release between 10,000 and 40,000 residential plots annually, priced at SR1,500 per sq. meter, for eligible citizens.

Plots will have a 10-year resale and rental restriction unless used for construction financing. After a decade, unused land will revert to the government, with buyers receiving compensation.

Al-Jadaan also emphasized better financing options for both residential and commercial property purchases. Reforms include updated white land fees to encourage development within 60 days, while new landlord-tenant regulations will be introduced in the next 90 days to maintain market balance. Authorities will monitor price trends and evaluate policy effectiveness through regular reports.

Al-Jadaan affirmed that Saudi Arabia has the capacity to stabilize the real estate market through institutional frameworks, stating, “These changes reflect Saudi Arabia’s proactive approach to economic growth.”