Saudi Crown Prince Mohamed Bin Salman issues directives to curb rising land prices and rents in Riyadh

Araweelo_News_Network

Riyadh (ANN)-Saudi Crown Prince Mohamed Bin Salman issues directives to curb rising land prices and rents in Riyadh. In response to the rising land prices and rental costs in Riyadh, Crown Prince Mohammed bin Salman on Saturday directed a series of measures aimed at achieving stability in the real estate sector, the Saudi Press Agency reported.

The decision followed a study carried out by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs, which assessed the challenges facing the market in the Saudi capital.

A key aspect of the directive will be the lifting of restrictions on land transactions and development in northern Riyadh.

The move will allow for the sale, purchase, division, and subdivision of land in designated areas, as well as the issuance of building permits, Saudi Press Agency reported.

The report say, The areas affected include a 17-square-kilometer section north of Riyadh, bordered by King Khalid Road to the west and Prince Saud bin Abdullah bin Jalawi Road to the south, as well as a 16.2-square-kilometer area north of King Salman Road, extending to Abu Bakr Al-Siddiq Road and Al-Qayrawan District.

Also accodding to report say, These additions, combined with previously lifted suspensions covering 48.28 square kilometers, bring the total area now available for development in Riyadh to 81.48 square kilometers.

To increase housing accessibility, the RCRC has been tasked with providing planned and developed residential lands for citizens.

Between 10,000 and 40,000 plots will be made available annually over the next five years, at a capped price of 1,500 riyals per square meter. These plots will be offered to married citizens or individuals over the age of 25, provided they do not own any existing real estate.

Strict regulations will govern the issuance of this land, preventing resale, rental, or mortgage for 10 years, except when used to finance construction. If the land remains undeveloped within this period, ownership will revert to the government, with the buyer reimbursed.

To further stimulate real estate supply, amendments to the white land fees system a policy designed to encourage the development of vacant land will be introduced within 60 days.

Also the additionally, regulatory measures will be implemented within 90 days to ensure a fair balance between landlords and tenants.

The General Authority for Real Estate and RCRC have been assigned the task of monitoring and controlling property prices in Riyadh.

The Report say, They will submit periodic reports to assess the effectiveness of these measures and ensure that the real estate market remains stable and accessible.