Saudi Gazette report
RIYADH — The Saudi government, through the Royal Commission for Riyadh City, has begun offering residential land plots to citizens at discounts of up to 84% below market prices, as part of a broader plan to stabilize the capital’s real estate market and curb rising land and rental costs.

On Wednesday, the Royal Commission for Riyadh City conducted an electronic lottery for residential plots via the Real Estate Balance platform, offering land at a fixed price of SR1,500 per square meter.

A total of 10,024 residential plots, covering an area of 6.38 million square meters, were allocated across eight neighborhoods: Al-Qirawan, Al-Malqa, Al-Nakheel, Al-Narjis, Namar, Al-Rimayah, Al-Rimal, and Al-Janadriyah. Each plot measures 300 square meters.

According to Al-Eqtisadiah’s newspaper, the offered prices represent discounts ranging from 16% to 84% compared to prevailing market rates in the designated neighborhoods.

The prices are also more than 50% below Riyadh’s average residential land price, which stands at approximately SR3,200 per square meter.

The steepest discount was recorded in Al-Qirawan at 84%, followed by Al-Malqa and Al-Narjis at 78%, Al-Rimal at 58%, and Al-Janadriyah at 16%.

The initiative forms part of Crown Prince Mohammed bin Salman’s five-point plan to restore balance to Riyadh’s real estate market after years of sharp increases in land and rental prices.

Under the program, the Royal Commission aims 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.

Eligibility is limited to married Saudi citizens or those aged 25 and above who do not already own residential property. To prevent speculation, beneficiaries are prohibited from selling, renting, mortgaging, or otherwise disposing of the land for 10 years, except for construction financing purposes. Plots that remain undeveloped within the specified period will be reclaimed, with their original value refunded.

Additional measures announced as part of the real estate balance strategy include lifting development restrictions on 81.48 square kilometers of land in northern Riyadh, restructuring the white land fee system, and freezing residential rent increases for five years.

Authorities will also publish periodic reports monitoring land and housing prices to ensure transparency and sustained market stability.

Housing experts estimate that Riyadh requires between 100,000 and 130,000 new housing units annually to meet demand, pointing to successful large-scale housing supply models in several Asian cities as potential benchmarks.

The combined initiatives aim to expand housing supply, improve affordability, and enhance quality of life across Riyadh’s neighborhoods, supporting long-term urban sustainability and economic stability in the capital.