RIYADH: In response to soaring land prices and rental costs in Riyadh, Crown Prince Mohammed bin Salman has directed a series of measures to stabilize the real estate sector, according to the report on Saturday.
The decision follows a study conducted by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs, which analyzed the challenges facing the market in the Saudi capital.
A key component of the directive is the removal of restrictions on land transactions and development in northern Riyadh.
This move permits the sale, purchase, division, and subdivision of land in designated areas, as well as the issuance of building permits, according to the report.
The affected areas 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.
With previously lifted suspensions covering 48.28 square kilometers, the total area now available for development in Riyadh has reached 81.48 square kilometers.
To enhance housing accessibility, the RCRC has been assigned the task of providing planned and developed residential lands for citizens.
Over the following five years, between 10,000 and 40,000 plots would be offered each year at a maximum cost of 1,500 riyals per square meter. These plots will be made available to married citizens or those over 25 who don't currently own any real estate.
Strict regulations will govern these land allocations, 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 boost real estate supply, amendments to the white land fees system, a policy encouraging the development of vacant land will be introduced within 60 days.
Furthermore, within ninety days, regulatory actions will be taken to guarantee a just distribution between landlords and tenants.
Finally, the General Authority for Real Estate and RCRC will monitor and regulate property prices in Riyadh.
They will submit periodic reports to assess the effectiveness of these measures, ensuring the real estate market remains stable and accessible.
[Reported by Arab News]
