Residential plots offered at up to 84% discount/Representative Image
In a landmark move to make housing more accessible and curb soaring real estate costs, Saudi Arabia is offering residential land at steep discounts across Riyadh. With price cuts of up to 84%, the initiative targets affordability while shaping the city’s long-term housing landscape.
Historic land discounts offered to citizens
According to Saudi Gazette, On Wednesday, the Royal Commission for Riyadh City conducted an electronic lottery through the Real Estate Balance platform, distributing residential plots at a fixed price of SR1,500 per square meter. The lottery allocated a total of 10,024 plots covering 6.38 million square meters across eight neighborhoods: Al-Qirawan, Al-Malqa, Al-Nakheel, Al-Narjis, Namar, Al-Rimayah, Al-Rimal, and Al-Janadriyah. Each plot measures 300 square meters.The offered prices represent discounts ranging from 16% to 84% compared to prevailing market rates in the designated neighborhoods. On average, the plots are priced more than 50% below Riyadh’s current average residential land price of SR3,200 per square meter. Al-Qirawan received the steepest discount at 84%, followed by Al-Malqa and Al-Narjis at 78%, Al-Rimal at 58%, and Al-Janadriyah at 16%.
Eligibility
This initiative is a key element of Crown Prince Mohammed bin Salman’s five point strategy to stabilize Riyadh’s real estate sector after years of rapid price increases. Under the program, the Royal Commission plans to provide between 10,000 and 40,000 fully developed residential plots annually for the next five years, all priced below SR1,500 per square meter.Eligibility is restricted to married Saudi citizens or those aged 25 and above who do not already own residential property. To curb speculation, beneficiaries cannot sell, rent, mortgage, or otherwise dispose of the land for 10 years, except for construction financing purposes. Plots left undeveloped within this period will be reclaimed, with their original value refunded to the owner.
Additional measures
Beyond discounted land, the authorities have introduced several complementary measures to stabilize the housing market:
- Lifting development restrictions on 81.48 square kilometers of land in northern Riyadh.
- Restructuring the white land fee system to encourage development.
- Freezing residential rent increases for five years.
- Publishing periodic reports on land and housing prices to ensure transparency and market stability.
Housing experts estimate that Riyadh needs between 100,000 and 130,000 new housing units annually to meet demand. The government is drawing on successful large scale housing models from Asian cities as benchmarks for effective implementation. The combined measures aim not only to expand housing supply but also to improve affordability and quality of life across Riyadh. By addressing both land availability and price controls, the initiative supports long-term urban sustainability and strengthens economic stability in the capital. Go to Source