Crown Prince’s directives on real estate sector to curb inflation

Mohammed Al-Jadaan, Saudi Minister of Finance

Saudi Minister of Finance Mohammed Al-Jadaan said that the recent directives issued by Crown Prince Mohammed bin Salman regarding achieving balance in the land and real estate sector in Riyadh reaffirm the government's ability to utilize available tools. This will be attained whether through regulations, policies, or measures to restore equilibrium in the real estate market. These efforts aim to enhance the supply of residential and commercial properties and land, driving economic growth and creating more jobs.

In an interview with Al-Ekhbariya, Al-Jadaan affirmed that achieving balance in the real estate market helps narrow the gap between supply and demand and curbs unjustified price increases.

Al-Jadaan also pointed out that rent and property costs constitute a significant portion of operating expenses in certain business sectors. Therefore, reducing market volatility and controlling price hikes can help curb inflation and support economic growth.

He added that the Crown Prince's directives will ensure a greater supply of land for developers, encouraging them to build more residential and commercial units. This will ease the financial burden on citizens seeking housing or starting businesses, support business sectors, reduce financial pressures, and bolster banking and mortgage activities.

The minister highlighted that these measures primarily target citizens, especially those most in need, while also implementing regulations to prevent support from being misallocated to undeserving groups.

The directives also include immediate solutions to boost real estate supply, such as lifting restrictions in North Riyadh, and introducing long-term strategies to ensure a sustainable property supply.

On March 29, the Saudi Crown Prince, who also serves as Prime Minister, issued several directives to balance the real estate sector.