New rental regs take effect in Riyadh, other regions in focus: Minister

Majid Al-Hogail, Minister of Municipalities and Housing

Minister of Municipalities and Housing Majid Al-Hogail said directives of Crown Prince Mohammed bin Salman aim to rebalance the local real estate sector, adding that Kingdom-wide property ownership rates are on the rise and have exceeded target levels.

Speaking at the Government Press Conference held today, Sept. 29, the minister said that under the Crown Prince's directives, several programs to support low-income families will be rolled out, ensuring they do not spend more than 30% of their income on housing.

He indicated that rental levels have risen above normal rates, which required intervention after monitoring the situation and studying possible solutions.

According to the minister, there is a plan to launch a "build-to-rent" program, which will help inject new housing units over the next two years and continue until 2030, as a key element in the strategy to increase market supply. This will be carried out in partnership with the National Housing Co. (NHC) and several development firms.

Al-Hogail noted that fixing prices is one of the strategies to ensure natural growth over the next five years, stressing that supply is the main driver of growth.

He stated that the new rental caps have already taken effect in Riyadh, while the government is monitoring other Saudi regions to maintain market stability.

The minister also pointed out the lifting of restrictions on some lands located north of Riyadh, covering more than 81 million square meters, is bound to pave the way for major development projects that will reshape the urban landscape.