First Avenue CFO: White land fees may hit activity, prices; evaluating TASI move

First Avenue Real Estate Development CFO Mohammad Al-Sabr says the company is assessing a move to the Main Market (TASI)

Nomu-listed First Avenue Real Estate Development Co.’s Chief Financial Officer (CFO) Mohammad Al-Sabr said regulations related to white land fees and rising land supply are likely to impact market activity and prices in the coming period.

Speaking on the sidelines of Argaam Connect, he said that the scale and duration of this impact remain uncertain, given multiple factors, including supply levels, development and financing costs, the pace of urban growth, and ongoing major projects in Riyadh.

Al-Sabr added that Riyadh’s real estate market is witnessing a relative slowdown in demand growth, as several stakeholders adopt a wait-and-see approach amid regulatory developments linked to white land fees and their potential impact on future supply.

Riyadh is undergoing rapid urban and economic transformation, driven by population growth and major Vision 2030 projects, which are fueling rising demand for residential and mixed-use developments.

First Avenue sees these developments as a natural phase of market evolution and emphasizes flexibility and selectivity in project and location choices to adapt to changes and capture opportunities, the CFO said.

He said the signing of the development agreement for the North Star Avenue in Riyadh’s Al Arid district marks an important step in expanding the company’s third-party development portfolio, a key pillar of its business model.

He added that the project reflects the company’s ability to execute its expansion strategy and strengthen its presence in the real estate market through high-quality developments in strategic locations, leveraging its development and operational expertise to deliver value-added projects.

The project highlights rising investor and partner confidence in the company’s ability to manage and develop real estate projects, particularly in the fast-growing mixed-use segment in Riyadh.

Al-Sabr noted that First Avenue holds a 45% stake in the Eastern Hindawiyah district project in Makkah, which includes infrastructure development and has a total development value exceeding SAR 2 billion.

He confirmed that the company is assessing its readiness for a potential transfer to the Main Market (TASI), supported by its operational and financial growth and subject to regulatory requirements.

He added that a move to TASI is a strategic milestone that broadens the investor base, enhances market visibility, and improves stock liquidity.

Al-Sabr said the company continues to evaluate the move and its timing in the best interests of the company and its shareholders, with any developments to be announced in line with regulatory requirements.