Saudi Arabia Plans Rent Cap and Real Estate Reforms
Saudi Arabia is exploring the implementation of a cap on residential and commercial rent increases to address soaring property prices, as confirmed by Abdullah Al-Hammad, CEO of the Real Estate General Authority (REGA).
This initiative is part of a larger strategy led by Crown Prince and Prime Minister Mohammed bin Salman aimed at rebalancing the real estate market in Riyadh.
Major Real Estate Reforms in Saudi Arabia
The proposed rent cap is one of several measures intended to regulate the property sector and promote fair market conditions.
These reforms are designed to boost housing supply and mitigate rising rental and property costs.
Like our Facebook page for the latest updates & job vacancies in KSA.
Key Directives of the Real Estate Reforms
- Finalization of a New White Land Tax Law: This law aims to encourage landowners to develop vacant plots.
- Lifting Development Restrictions in Northern Riyadh: This will release new plots for development.
- Regulation of Lease Agreements: New regulations will protect tenant rights.
- Enhanced Market Oversight: Measures will be put in place to prevent price manipulation.
Expansion of Residential Land in Riyadh
Authorities have recently approved the lifting of transaction bans on 81 million square meters of land in northern Riyadh.
This decision is expected to alleviate supply constraints and stimulate new residential developments.
Like our Facebook page for the latest updates & job vacancies in KSA.
The Royal Commission for Riyadh City has been assigned the task of providing 10,000 to 40,000 developed residential plots annually over the next five years.
These plots will be priced at no more than SR1,500 per square meter and will be available to eligible Saudi citizens under strict resale and transfer regulations.
New Regulations for Landlord-Tenant Relations
To promote fair rental practices, the government is introducing regulations to govern landlord-tenant relationships. These reforms aim to ensure transparent agreements and balanced terms for both parties.
Ensuring Stability in the Real Estate Market
The Real Estate General Authority and the Royal Commission will monitor property prices and provide regular updates to maintain market stability.
These efforts align with Vision 2030’s objective of making homeownership more accessible for Saudi citizens.
Saudi Arabia’s ambitious real estate reforms, including the proposed rent cap and land development initiatives, are expected to stabilize housing prices and enhance market transparency.
These measures reflect the government’s commitment to making housing more affordable while ensuring fair competition in the property sector.
Read More
Gulf Trick
