Saudi Gazette report

RIYADH — Minister of Municipalities and Housing Majed Alhogail affirmed that Saudi Arabia's new policies in the real estate sector primarily aimed to restore balance in this vital sector, thus reducing housing costs for citizens, encouraging investment, and expanding options for both citizens and investors.

He noted that the percentage of households owning their own homes has exceeded the targeted figures.

Addressing the government press conference in Riyadh on Monday, Alhogail pointed out that lifting the freezing of land transactions and development in northern Riyadh, covering an area of ​​over 81 million square meters, has paved the way for major investment projects in the region, contributing to the urban transformation of the city.

He indicated that the names of eligible land owners will be announced via the Riyadh Real Estate Balance Platform in November.

Alhogail stated that the directives of Crown Prince and Prime Minister Mohammed bin Salman were the starting point for restoring balance in the real estate sector. He referred to the King's address to the Shoura Council, delivered on his behalf by the Crown Prince, in which it was stated that Saudi Arabia's economic growth had been accompanied by unacceptable price increases in some areas, which had negatively impacted the affordability of housing for citizens.

He stated that the National Housing Company, along with a group of real estate development companies, will launch the "Build to Rent" program, which will add new rental units to the market over the next two years, and until 2030, as part of efforts to achieve the primary objective of increasing housing supply.

Regarding the White Land Tax Law, which was introduced in line with the directive of the Crown Prince, Alhogail noted that it was approved and announced ahead of schedule.

The executive regulations were issued 90 days later, followed by the announcement of the targeted geographical areas, the fee rates, and the registration deadlines.

He stated that 40 percent of white land owners have registered their properties, reflecting their confidence that the program's objective is to encourage development, not to generate revenue.

Regarding the implementation of regulations governing the relationship between landlords and tenants, Alhogail affirmed that this decision will directly contribute to regulating the residential and commercial rental markets, balancing the interests of all parties, promoting supply and demand growth, and enhancing the appeal of living in the Kingdom.

Alhogail emphasized that price stabilization is one of the strategies to ensure sustainable growth over the next five years, but stressed that increasing supply remains the key to achieving this growth. He also highlighted the leadership's commitment to addressing the challenges facing the housing sector and providing Saudi citizens with broader opportunities for housing and investment.