Saudi Arabia is considering implementing a cap on residential and commercial rent increases to stabilize soaring property prices, confirmed the CEO of the Real Estate General Authority (REGA), Abdullah Al-Hammad. This initiative is part of a broader strategy led by Crown Prince and Prime Minister Mohammed bin Salman to rebalance the real estate market in Riyadh.

Major Real Estate Reforms in Saudi Arabia

The proposed rent cap is one of several measures designed to regulate the property sector and ensure fair market conditions. These initiatives aim to increase housing supply and curb rising rental and property costs.

Key Directives of the Real Estate Reforms

• Finalizing a new White Land Tax law to encourage landowners to develop vacant plots.

• Lifting development restrictions on northern Riyadh to release new plots.

• Regulating lease agreements to protect tenant rights.

• Enhancing market oversight to prevent price manipulation.

Expansion of Residential Land in Riyadh

Authorities recently approved lifting transaction bans on 81 million square meters of land in northern Riyadh. This move is expected to ease supply constraints and drive new residential developments.

The Royal Commission for Riyadh City has been tasked with providing 10,000 to 40,000 developed residential plots annually for 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 ensure fair rental practices, the government is introducing new regulations that will govern landlord-tenant relationships. These reforms aim to provide 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 reports to ensure market stability. These measures align with Vision 2030’s goal of making homeownership more accessible for Saudi citizens.

Conclusion

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 efforts reflect the government’s commitment to making housing more affordable while ensuring fair competition in the property sector.