Riyadh property higher demand create imbalance, false shortage: Al-Hogail

Saudi Housing Minister, Majid Al-Hogail

Saudi Housing Minister Majid Al-Hogail said Riyadh has become a magnet for residents and investors, driving up demand against limited supply, which created a market imbalance that requires intervention.

In an interview with Al Arabiya TV, he stated that a process has begun to define the geographical boundaries of Riyadh to quickly address this shortage and ensure it continues to grow as a global city that leads in quality of life and development.

Al-Hogail explained the strategy rests on four pillars: introducing land fees to boost transparency, zoning to clarify obligations, annual reviews to prevent monopolies and control prices, and billing, which will start in January.

Rising real estate prices are unjustified and restrict growth, and land fees will encourage owners to develop or sell idle plots, which will expand supply, increase competition, correct prices, and provide more options for households and businesses, he added.

The government is expediting permits and approvals through platforms such as Etmam, aiming to develop a fair, transparent, and stable market that deters speculation and land hoarding, the minister said.

Riyadh accounts for about 50% of Saudi Arabia’s non-oil economy and is targeted to rank among the world’s top 10 cities by 2030, he said, adding that the supply of real estate and office space will rise with prices diversified to meet the needs of all income groups.

The new zoning scheme applies annual fees based on priority tiers: 10% of land value for Tier 1 (highest), 7.5% for Tier 2 (high), 5% for Tier 3 (medium), and 2.5% for Tier 4 (low), according to Argaam’s data.