A Royal Directive to Address Unjustified Surge in Real Estate and Rental Prices

As the blessed Eid al-Fitr arrives, we extend our warmest wishes to the Islamic and Arab nations, praying for continued prosperity and peace for our beloved Kingdom. This year, Riyadh—the radiant capital of our cherished nation—celebrates two occasions: the joyous Eid al-Fitr and the triumph of its residents, who are embraced by the unwavering care of His Royal Highness the Trustworthy Crown Prince.

His profound dedication to Riyadh, its people, and their well-being has now culminated in a festive gift: decisive measures to rectify and regulate the real estate market in our beloved capital. May God preserve the Kingdom and extend the life of my lord, the Custodian of the Two Holy Mosques King Salman bin Abdulaziz, and His Royal Highness my lord Crown Prince Mohammed bin Salman bin Abdulaziz. May we continue to thrive under their leadership, today and always, by the grace of the Almighty.  

Since the launch of our visionary Journey of 2030, we have been certain that this transformative path—in its essence, spirit, and ambition—would unlock new horizons for sustainable economic balance. This vision was built upon a clear understanding of the Kingdom’s potential, surpassing what could have been achieved in prior eras. Economic growth has been the driving force behind all other forms of progress, and our Vision 2030 did not emerge in a vacuum. It was born from a nation strong in unity, security, and social stability—a foundation that ensures every Saudi citizen, present and future, reaps its rewards.  

Recently, however, the real estate sector—particularly in Riyadh—has witnessed an unjustified and disproportionate surge in land and rental prices. The city’s rapid growth and rising demand, outpacing supply, led some property owners and investors to exploit the situation, inflating prices without logical justification. Mistaking this for sound business practice, they failed to recognize how such unchecked increases disrupt other sectors, hinder investment, and exacerbate housing challenges. Though their actions yielded record-high figures in the short term, it demanded the intervention of wise leadership to realign the market with its rightful course.  

His Royal Highness the Crown Prince and Prime Minister, is a leader of knowledge and action. No decision is made without thorough study and expert consultation. Thus, he directed the Royal Commission for Riyadh City and the Council of Economic and Development Affairs to analyze the real estate market’s inflationary trends. Upon reviewing their findings, His Royal Highness issued decisive directives to restore equilibrium to Riyadh’s real estate sector—addressing land and rental prices with precision. I view these measures as the first phase of reform, with subsequent steps to refine and enhance their impact. This is the policy of Mohammed bin Salman: wisdom that allows the market to self-correct, yet stands ready to intervene swiftly when balance is not achieved organically.  

Key directives include, but are not limited to:  

- Releasing vast withheld land plots to expand supply.  

- Providing planned and developed residential lands to meet demand.  

- Amending the white land tax system to discourage hoarding.  

- Regulating landlord-tenant relationships to ensure fairness.  

- Monitoring real estate prices to prevent exploitation.  

The immediate goal is to *increase real estate supply, ensuring equilibrium where supply meets—and ideally exceeds—demand. This will stabilize prices, offer affordable housing options, and ensure that price adjustments are driven by service quality, competitive offerings, and added value—not scarcity or opportunism. In the lexicon of Mohammed bin Salman, the notion of "take it or leave it" is wholly rejected. Housing must remain accessible to all, not held hostage by the greed of a few. Every citizen deserves the chance to achieve their dreams, and under these directives, Riyadh’s market will reflect that principle.