Saudi Crown Prince Directs Extension of Study for Regulating Landlord-Tenant Relationship for a Period Not Exceeding 90 Days
Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister of Saudi Arabia, has directed the extension of the study period for taking the necessary systemic measures to regulate the relationship between landlord and tenant for a period not exceeding 90 days. This aims to ensure a balance between the interests of all parties in the real estate sector, especially given the rapid growth in real estate across Saudi Arabia, and particularly in Riyadh.
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This directive is based on recommendations submitted by the General Real Estate Authority in coordination with relevant entities, with the aim of completing the regulatory requirements for proposed solutions and ensuring their comprehensiveness across all residential, commercial, and office assets.
This directive underscores the wise leadership's commitment to transparency as a firmly established approach in government work, while ensuring that the upcoming study considers the rights of all related parties. This will contribute to solidifying fairness in rental transactions and protecting beneficiaries from market fluctuations.
Furthermore, it aims to foster an attractive and stimulating investment environment in the Saudi real estate market, especially with the remarkable expansion witnessed in Riyadh's real estate sector recently, as reported by the Saudi Press Agency (SPA).
Measures to Regulate the Relationship Between Landlords and Tenants in Riyadh
At the end of last March, Crown Prince Mohammed bin Salman bin Abdulaziz directed that necessary systemic measures be taken within a period not exceeding 90 days to regulate the relationship between landlords and tenants, ensuring a fair balance between the interests of all concerned parties.
The directive included tasking the General Real Estate Authority and the Royal Commission for Riyadh City with monitoring and overseeing real estate prices in Riyadh, and submitting periodic reports that contribute to effectively guiding real estate policies.
Practical Steps to Address Rising Real Estate Prices in Riyadh
This directive is part of a package of measures ordered by the Crown Prince to address the noticeable increase in Riyadh's real estate prices. He tasked the Royal Commission for Riyadh City with providing planned and developed residential lands for citizens, ranging from 10,000 to 40,000 plots annually, over the next five years. This aligns with the volume of supply and demand in the real estate market.
A price ceiling of no more than 1500 Saudi Riyals per square meter has been set, with priority given to married citizens or those over 25 years old.
These steps are part of a comprehensive strategy aimed at developing the Saudi real estate market, achieving price balance, and ensuring the availability of suitable housing options for citizens within the framework of Saudi Vision 2030.
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Lifting Restrictions on Land Disposition in Strategic Locations North of Riyadh
Recent measures directed by the Crown Prince included lifting restrictions on sale, purchase, subdivision, and partitioning, as well as issuing building permits and approving plans for a number of Riyadh lands located in the northern area of the capital. These steps aim to support urban development and meet the increasing demand for real estate.
The areas for which restrictions were lifted include: Area One: Located north of Riyadh, bounded on the west by King Khalid Road and the extension of Prince Mohammed bin Saad bin Abdulaziz Road (formerly Al-Khair Road), on the south by Prince Saud bin Abdullah bin Jalawi Road, on the north by Asmaa Bint Malik Street, and on the east by Al-Aard district, with an area of approximately 17 square kilometers. Area Two: Located north of King Salman Road, bounded on the east by Abu Bakr Al-Siddiq Road and Al-Aard district, on the north by Prince Khalid bin Bandar Road, and on the west by Al-Qayrawan district, with an area of 16.2 square kilometers.
These areas are in addition to the two regions whose restrictions were recently lifted, covering an area of 48.28 square kilometers, bringing the total area of lands with lifted restrictions in Riyadh to 81.48 square kilometers, as officially announced and based on the accompanying map.
