Introduction
Riyadh, Saudi Arabia’s capital, has witnessed significant increases of land and rental values in recent years, raising concerns about housing affordability and market stability. In reaction, Saudi Crown Prince Mohammed bin Salman has instituted a number of sweeping price control measures aimed at creating equilibrium in the Riyadh real estate sector, increasing the provision of affordable housing, and reducing speculation. These real estate price controls in Riyadh were announced in March and April 2025, after periods of study by the Royal Commission for Riyadh City (RCRC) and the Council of Economic and Development Affairs, and will affect the future evolution of Riyadh’s urban future.
The Need for Reform: Rising Prices & Limited Supply
The Riyadh property market has been under intense pressure from demographic growth, fast urbanization, and speculative buying. Rent and new land prices are through the roof, creating a situation virtually impossible for ordinary people to buy affordable and accessible homes and developers to acquire land for future projects. The government was starting to appreciate that increasing prices and constrained real estate supply would strain social cohesion and put long-term regional economic aspirations under Vision 2030 at risk. These Saudi Arabia real estate policies are designed to address such challenges and ensure a balanced Saudi real estate market.
Key Measures Announced
1. Relaxation of Land Transaction Restrictions in Northern Riyadh
One of the most significant Saudi Crown Prince real estate initiatives is the removal of land transaction restrictions (e.g., sales, purchases, subdivision, and obtaining building permits) in two of the most important northern regions of Riyadh. These regions are:
- A 17 square kilometer area, bordered by King Khalid Road, Prince Mohammed bin Saad ibn Abdulaziz Rd, Prince Saud bin Abdullah ibn Jalawi Road, Asma bint Malik Street, and Al-Arid neighborhood.
- A 16.2 square kilometer area, north of King Salman Road, from Abi Bakr Al-Siddiq Road; bordered by Prince Khalid bin Bandar Road, Al-Qayrawan neighborhood, and Al-Arid neighborhood.
Combined with previously released areas, the total land now available for development in Riyadh has reached 81.48 square kilometers. This Riyadh real estate price regulation is a core part of the Saudi Crown Prince Riyadh price control strategy.
2. Significant Supply of Affordable Residential Land
To address housing shortages directly, the RCRC is instructed to release 10,000 to 40,000 fully planned and developed residential plots on an annual basis for the next five years. The plots will be sold with a maximum price of SAR 1,500 per square meter to qualifying Saudi citizens (married or 25 or older, who currently do not own property). This is a direct impact of Saudi Crown Prince’s real estate price control measures in Riyadh and is expected to shape how Saudi Crown Prince’s price controls will affect Riyadh real estate market.
3. Conditions of Buyer-ship and Use of Land
The terms of sale set to deter speculation, and guarantee an actual end user are extremely steel, and include the following:
- A ten-year restriction on selling, renting or mortgaging the land (constructing loans are not included).
- The government bought back the land if construction has not been completed in ten years, and paid the buyer for its value back.
This is part of the real estate regulation Saudi Arabia is implementing to ensure compliance and genuine occupancy.
4. Changes to the White Land Tax Law
The Saudi Crown Prince ordered immediate change to the White Land Tax Law—a policy intended to discourage the hoarding of undeveloped urban land and motivate development. The changes are to happen in a period of 60 days so that land supply increases and speculation slows down. These Saudi Arabia real estate price regulation amendments are central to the Saudi real estate market changes due to Riyadh price control measures.
5. New Landlord-Tenant Regulations
Within 90 days, new regulatory measures will be introduced to balance the relationship between landlords and tenants, protecting both parties and stabilizing the rental market. These steps are intended to prevent exploitative practices and ensure fair access to housing, further demonstrating the Saudi Crown Prince real estate initiatives 2025.
6. Market Monitoring and Transparency
The General Real Estate Authority and the RCRC have been tasked with monitoring property prices and submitting regular reports to ensure transparency and maintain market stability. This will help track the price control impact on Riyadh property market and provide insights into the new real estate price control measures launched in Riyadh by Saudi Crown Prince.
Wider Influence and Perspective
These changes are not merely temporaryBandaid solutions – they are part of a wider agenda to establish an organic, open, and citizen-centric real estate market. Through the use of legal, regulatory, and policy mechanisms, the Saudi government seeks to:
- Increase residential and commercial property supply.
- Increase affordability and availability of housing for Saudi nationals.
- Drive economic growth and employment in the construction and real estate industries.
- Align Riyadh’s development with the targets of Vision 2030 for diversified, sustainable urban development.
Finance Minister Mohammed Al-Jadaan highlighted that these projects are a testament to the leadership’s belief in “a fair and operating real estate market where supply and demand are balanced and price inflation is controlled.” This reflects the Saudi Crown Prince announces price control measures for Riyadh real estate.
Challenges and Opportunities
Albeit ambitious, success for the reforms will be critical and depend on effective implementation and continuous oversight. Main challenges are:
- Ensuring released land is developed timely and not subjected to new types of speculation.
- Pursuing transparency in assigning plots and monitoring adherence to buyer conditions.
- Coordinating among various government agencies to implement new rules and tax changes.
If they succeed, these initiatives would establish a new benchmark for the development of cities in the region and make Riyadh a model for balanced, inclusive, and sustainable growth.
Conclusion
Saudi Crown Prince Mohammed bin Salman’s move is a turning point for Riyadh real estate. By removing limits on land deals, capping plot prices, overhauling taxes, and enacting new regulations, the Saudi leadership is acting firmly to stabilize prices, boost housing supply, and shield citizens from speculation pressures. These real estate price controls, based on Vision 2030, do not just promise to rebalance the capital’s real estate market but also improve the quality of life for its citizens and maintain Riyadh’s upward trajectory as a global city.
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