Saudi Arabia’s Crown Prince HRH Mohammed bin Salman has ordered measures to rein in housing costs, describing the recent surge in residential prices as unacceptable. In a televised address, he said the kingdom’s strong economic growth has been accompanied by a jump in property values in several regions, prompting intervention to ease affordability pressures.
The Crown Prince directed the Royal Commission for Riyadh City and the Council of Economic and Development Affairs to release between 10,000 and 40,000 residential plots annually over the next five years. These plots will be fully planned and sold at capped prices, with priority given to Saudi citizens over the age of 25 or those who are married and do not already own homes. The government aims to expand supply and lower entry costs for young buyers.
Financial reforms are also underway. The Saudi Central Bank recently authorised the Saudi Real Estate Refinance Company to issue the kingdom’s first residential mortgage-backed securities. Analysts say the securitisation programme is intended to boost liquidity in the housing finance market, enabling banks to issue more mortgages while reducing borrowing costs for households.
Foreign participation in the property sector is set to increase under a new real estate law scheduled to take effect in January 2026. The law allows non-Saudi individuals, companies and non-profits to acquire residential, commercial and operational properties within designated zones. In limited cases, foreign residents will be permitted to own a single home outside those zones. However, restrictions on Mecca and Medina remain in place, with ownership reserved for Saudis, though some exceptions will apply to Muslim foreigners and foreign-owned Saudi entities under specific conditions.
The Saudi real estate market has nearly doubled in value in Riyadh since 2019, driven by an influx of residents and investors. Knight Frank data shows demand cooled in the first half of this year as buyers postponed purchases, though other cities such as Madinah continued to post gains. The government’s latest steps, combined with major development projects including Rua Al Madinah, signal a coordinated effort to stabilise prices, broaden housing availability and align the sector with the goals of Vision 2030.
