On Wednesday 10 September, during the opening of the Shura Council, Crown Prince Mohammed bin Salman highlighted the urgent need to address the escalating residential property prices in Saudi Arabia, which have risen to “unacceptable” levels.
He emphasized that this increase has outpaced household incomes, necessitating government action to restore balance in the real estate sector.
The Crown Prince outlined several initiatives aimed at curbing property price inflation, including lowering development costs, promoting real estate investment, and expanding housing options for both citizens and foreigners.
This announcement comes in the wake of the Saudi cabinet’s ratification of changes to the White Land Tax Law which is designed to encourage the development of vacant land and the utilization of unoccupied properties.
Despite a surge in inquiries from landowners and developers regarding the new regulations, legal experts indicate that many are still assessing the implications before making significant decisions.
Additionally, recent updates to property laws now permit foreign ownership of real estate in certain areas, further opening the market.
In his speech, the Crown Prince reiterated the importance of economic diversification as part of Vision 2030, stressing that stable public finances are crucial for sustainable development and a balanced real estate market that benefits all citizens.
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