Wednesday, April 2, 2025
Major real estate reforms, including a rent ceiling in Saudi Arabia
In an effort to control skyrocketing rents, Saudi Arabia is looking into limiting rent increases for both commercial and residential properties, according to Abdullah Al-Hammad, chief executive officer of the Real Estate General Authority (REGA). Trending: Retirement age in Saudi Arabia
In an interview with Al Arabiya, Al-Hammad explained that the plan is an extension of Crown Prince and Prime Minister Mohammed bin Salman's larger initiative to restore balance to Riyadh's property market.
Out of the five main directives in the initiative, the most important one is the completion of a new White Land Tax law that will increase the supply of homes and decrease the increase in property and rental costs.
Releasing new plots, controlling lease agreements, and keeping frequent market surveillance are all part of the Crown Prince's directions to increase supply, according to Al-Hammad. The directives also aim to eliminate construction limitations on the northern portions of the capital.
The restriction on 81 million square meters of property in northern Riyadh was recently lifted by the authorities. This includes sales, purchases, subdivisions, and permissions. In order to promote new housing development and ease supply restrictions, this action has been taken. Most Viewed: Madina police resonds to viral video of woman attacking security guard
Depending on demand, the Royal Commission for Riyadh City is expected to provide 10,000 to 40,000 residential plots annually over the following five years as part of these efforts.
All qualified Saudi nationals, including married people or those above the age of 25, would be able to purchase one of these plots for no more than SR1,500 per square meter. However, there are certain restrictions, such as a 10-year no-resale/transfer period, unless the purchase is to fund building.
Additional changes include new rules to control landlord-tenant interactions and guarantee equitable conditions for all parties involved. In addition to REGA, the Royal Commission will be in charge of keeping tabs on property values and reporting back on a regular basis. Join our Saudi Expatriates one million family on Facebook
Major real estate reforms, including a rent ceiling in Saudi Arabia. Saudi-Expatriates.com
