RIYADH — Saudi Arabia is studying the implementation of a cap on residential and commercial rent increases to tackle soaring prices, the CEO of The Real Estate General Authority (REGA), Abdullah Al-Hammad, confirmed on Tuesday. Speaking to Al Arabiya, Al-Hammad said the proposal is part of a broader effort led by Crown Prince and Prime Minister Mohammed bin Salman to rebalance the real estate market in Riyadh. The initiative includes five key directives, notably the finalization of a new White Land Tax law aimed at boosting housing supply and curbing the rise in property and rental prices. "The Crown Prince's directives focus on increasing supply by lifting development restrictions on the northern parts of the capital, releasing new plots, regulating lease agreements, and maintaining regular market oversight," Al-Hammad said. Authorities recently approved lifting the ban on transactions — such as sales, purchases, subdivisions, and permits — for 81 million square meters of land in northern Riyadh. The move is designed to ease supply constraints and encourage new residential development. As part of these efforts, the Royal Commission for Riyadh City has been tasked with providing between 10,000 and 40,000 planned and developed residential plots per year over the next five years, based on demand. These plots will be offered at prices not exceeding SR1,500 per square meter to eligible Saudi citizens, including married individuals or those over the age of 25, with specific conditions prohibiting resale or transfer for 10 years unless for financing construction. Other reforms include new regulations to govern landlord-tenant relations and ensure fair terms for both parties. REGA and the Royal Commission will also be responsible for monitoring property prices and submitting regular reports.
