Saudi Arabia's real estate prices are finally decreasing
The changes follow decisive measures ordered by Crown Prince Mohammed bin Salman
Saudi Arabia’s soaring real estate prices are finally starting to ease up, thanks to major moves ordered by Crown Prince and Prime Minister Mohammed bin Salman Al Saud. This is what you need to know about Saudi Arabia’s real estate directives.
Issued late in March, Saudi Arabia’s real estate directives include lifting restrictions on land use, providing citizens with access to developed residential plots, introducing amendments to the White Land Tax system, and regulating the relationship between landlords and tenants, according to Asharq Alawasat.
After several assessments by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs, which came to the conclusion that land and rental prices in the capital had surged to unsustainable levels over recent years, Crown Prince Mohammed bin Salman Al Saud intervened.
According to the new data released by the General Authority for Statistics, the real estate price index in Riyadh fell to 3.6 per cent year-over-year in the second quarter of 2025. This shows a massive drop when compared to the 10.7 per cent increase in the first quarter.
Nationally, the rate of increase in real estate prices has also lowered, with the annual growth rate at 3.2 per cent in the second quarter, down from 4.3 per cent in the first. The decrease is largely credited to the residential sector, which saw annual price growth drop sharply to just 0.4 per cent, compared with 5.1 per cent in the first quarter.
The directives also included lifting restrictions on buying, selling, subdividing, and developing land across more than 81 square kilometres in northern Riyadh. Additionally, a real estate price cap has also been implemented for between 10,000 and 40,000 serviced residential plots, at SAR1,500 per square metre. These plots will then be made available to married citizens or individuals over the age of 25 who do not already own property.
Visit: rcrc.gov.sa
