The Saudi government, through the Royal Commission for Riyadh City, has launched a major housing initiative offering more than 10,000 residential land plots in Riyadh at a fixed price of SR1,500 per square meter — representing discounts of up to 84% below current market rates — as part of efforts to stabilize the capital’s real estate market and improve housing affordability.
Historic Move to Control Riyadh Real Estate Prices
The initiative aims to curb the sharp rise in land and rental prices that Riyadh has experienced in recent years. On Wednesday, the Royal Commission for Riyadh City conducted an electronic lottery for residential plots through the Real Estate Balance platform, marking one of the largest government-led land allocations in the capital.
Details of the Residential Land Allocation
Number and Size of Plots
A total of 10,024 residential plots covering an area of 6.38 million square meters were allocated across eight neighborhoods. Each plot measures 300 square meters, providing sufficient space for private residential construction.
Neighborhoods Included
The plots are located in the following Riyadh districts:
- Al-Qirawan
- Al-Malqa
- Al-Nakheel
- Al-Narjis
- Namar
- Al-Rimayah
- Al-Rimal
- Al-Janadriyah
Massive Discounts Compared to Market Prices
According to economic reports, the offered land prices represent discounts ranging from 16% to 84% compared to prevailing market rates in the designated neighborhoods. The fixed price of SR1,500 per square meter is also more than 50% lower than Riyadh’s average residential land price of approximately SR3,200 per square meter.
Highest Discounts by Area
- Al-Qirawan: 84% discount
- Al-Malqa & Al-Narjis: 78% discount
- Al-Rimal: 58% discount
- Al-Janadriyah: 16% discount
Eligibility Criteria for Applicants
Eligibility for the program is limited to Saudi citizens who are either married or aged 25 and above, and who do not currently own residential property. The criteria are designed to prioritize first-time homeowners and families seeking affordable housing.
Restrictions to Prevent Speculation
To ensure the land is used strictly for housing purposes, beneficiaries are prohibited from selling, renting, mortgaging, or transferring the plots for a period of 10 years, except for construction financing. Any plot that remains undeveloped within the specified timeframe will be reclaimed by authorities, with the original purchase value refunded.
Part of Crown Prince’s Five-Point Housing Plan
This initiative forms part of Crown Prince Mohammed bin Salman’s five-point plan to restore balance to Riyadh’s real estate market. Under the program, the Royal Commission plans to provide between 10,000 and 40,000 fully planned and developed residential plots annually over the next five years, all priced below SR1,500 per square meter.
Additional Measures to Stabilize the Housing Market
Alongside discounted land allocations, authorities have announced several complementary measures:
- Lifting development restrictions on 81.48 square kilometers of land in northern Riyadh
- Restructuring the white land fee system to encourage development
- Freezing residential rent increases for five years
- Publishing regular reports to monitor land and housing prices
Meeting Riyadh’s Growing Housing Demand
Housing experts estimate that Riyadh requires between 100,000 and 130,000 new housing units annually to meet growing demand. The government’s approach draws inspiration from large-scale housing supply models in several Asian cities, aiming to expand supply, enhance affordability, and improve quality of life across the capital.
Long-Term Impact on Urban Sustainability
By increasing land availability, regulating prices, and curbing speculation, the combined initiatives are expected to support long-term urban sustainability and economic stability in Riyadh, while making homeownership more accessible for Saudi citizens.
