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Riyadh Real Estate Awaits Impact of Measures to Curb Price Surge

Residential and commercial properties in the Saudi capital Riyadh (Reuters)
Residential and commercial properties in the Saudi capital Riyadh (Reuters)
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Riyadh Real Estate Awaits Impact of Measures to Curb Price Surge

Residential and commercial properties in the Saudi capital Riyadh (Reuters)
Residential and commercial properties in the Saudi capital Riyadh (Reuters)

The Saudi real estate market is currently in a state of cautious anticipation, driven by unprecedented decisions and measures announced by Crown Prince Mohammed bin Salman.

These steps aim to increase the supply of properties and restore balance in the market to address the rising costs of land and rental prices.

Data from the market shows a stagnation in property purchases by citizens, as they await the impact of these measures, hoping they will bring stability to property prices in Riyadh and lower costs.

In March, the Crown Prince directed the implementation of a series of regulatory measures, including lifting restrictions on the development of over 81 square kilometers of land north of Riyadh.

This move is expected to deliver tens of thousands of affordable residential plots annually to citizens, following a significant rise in property prices in Riyadh.

According to Saudi Minister of Municipal and Rural Affairs and Housing Majid Al-Hogail, these measures will add between 10,000 and 40,000 plots of land annually in the northern region of Riyadh, ensuring a better balance between supply and demand in the market.

The Crown Prince has already donated 1 billion riyals to the National Developmental Housing Foundation (Sakan), represented by Jood Eskan, to support home ownership for eligible families across Saudi Arabia.

The housing projects funded by this donation are to be completed within 12 months and executed by national companies.

The Crown Prince also ordered monthly progress reports to ensure that all residential units are delivered within one year.

Real estate market experts told Asharq Al-Awsat that current market data reveals a stagnation in property purchases by citizens, as they await the impact of recent policy changes and their potential to restore balance to the market.

Many real estate companies and agencies have observed a decline in sales activity, with property marketers facing difficulties in encouraging buyers who prefer to delay decisions until the effects of Crown Prince Mohammed bin Salman’s directives take shape.

Real estate expert and marketer Abdullah Al-Mousa told Asharq Al-Awsat that the current stagnation in property prices in Riyadh is a direct result of the Crown Prince’s initiatives to increase property supply, which aim to restore price equilibrium following the recent surge in real estate costs.

He views the decline as a positive step toward balancing supply and demand, contributing to a more sustainable and fair market for all stakeholders.

Al-Mousa anticipates that this stagnation will persist until all government directives are fully implemented in the coming months.

He noted that, with plans to increase the property supply, the market could experience gradual recovery in the long term, especially given Riyadh’s continued population and economic growth.

The expert highlighted that several factors may sustain the current stagnation, including high interest rates, which reduce citizens’ purchasing power, the oversupply of properties relative to demand, and global economic fluctuations that could affect investments.

However, he emphasized that Riyadh’s ongoing population growth, improving national economy, rising per capita income, large-scale infrastructure projects like the Riyadh Metro, and continued government support for housing programs are expected to drive the recovery of the real estate market.

Al-Mousa also predicted further improvement in the sector as policies are implemented and market conditions are monitored.

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Business

Real Estate Balance Platform Regulates Market, Signals Positive Momentum in Riyadh Trading

The Saudi capital, Riyadh (Asharq Al-Awsat) 
The Saudi capital, Riyadh (Asharq Al-Awsat) 
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Real Estate Balance Platform Regulates Market, Signals Positive Momentum in Riyadh Trading

The Saudi capital, Riyadh (Asharq Al-Awsat) 
The Saudi capital, Riyadh (Asharq Al-Awsat) 

Following the Royal Commission for Riyadh City’ s announcement of the results of the electronic draw for purchasing residential land through the Real Estate Balance platform, Asharq Al-Awsat learned that some of the plots allocated to eligible beneficiaries will be sold at prices below SAR 1,500 (about $400) per square meter, depending on their locations.

The land distribution comes in implementation of directives issued by Crown Prince and Prime Minister Mohammed bin Salman to take the necessary steps to restore balance to Riyadh’s real estate sector.

Under these directives, the Royal Commission for Riyadh City is tasked with providing planned and developed residential land for citizens at a rate of between 10,000 and 40,000 plots annually over the next five years, at prices not exceeding SAR 1,500 per square meter.

On Wednesday, the Commission announced the issuance of the electronic draw results after completing all procedures related to verifying applicants’ eligibility and reviewing objections submitted ahead of the draw.

Competitive Prices

Real estate specialists told Asharq Al-Awsat that the Commission has allocated large tracts of land for sale to eligible beneficiaries in key locations within Riyadh’s urban fabric, noting that the move offers more choices at competitive prices and reflects positively on the overall real estate market in the Saudi capital.

They added that beneficiaries will be able to build homes at costs comparable to the prices of apartments currently offered for sale in northern Riyadh neighborhoods, which proved that the directives of Crown Prince Mohammed bin Salman have translated into tangible outcomes, enabling citizens to obtain their first homes at lower prices.

Price Decline

Real estate specialist Khaled Al-Mobid said that offering more than 6.3 million square meters of land this year through the Real Estate Balance platform aims to inject additional land within the urban area and increase housing supply with high planning quality. He described the step as important in curbing prices, which have risen recently in Riyadh.

He added that the rollout of further land areas through the platform over the next four years will help meet demand from young people and low-income segments, making affordable housing more accessible and facilitating first-home ownership.

Al-Mobid expected the Riyadh real estate market to see a correction in the coming years as the measures directed by the Crown Prince and Prime Minister are fully implemented by the relevant authorities.

Construction Costs

Another real estate specialist, Ahmed Omar Basodan, said that based on the announced locations for beneficiaries of the first batch, recipients will be able to own villas at prices lower than apartments currently offered for sale in the same neighborhoods. He explained that preliminary estimates put the combined cost of land purchase and construction at between SAR 900,000 and SAR 1.2 million.

He added that setting a ceiling price of SAR 1,500 per square meter for land will put downward pressure on prices in those areas, forcing them to retreat and become more affordable. Basodan noted that more than 10,000 plots have been allocated this year through the platform, supporting expanded housing supply, market stability, and improved quality of life.

Electronic Draw

In its latest statement, the Royal Commission for Riyadh City said the electronic draw was conducted under the supervision of an independent committee representing the Royal Commission, the Ministry of Justice, the General Real Estate Authority, Riyadh Municipality, and the Saudi Data and Artificial Intelligence Authority (SDAIA), using advanced technological systems to ensure fairness and equal opportunity.

The Commission confirmed that the final results are now available on the Real Estate Balance platform, detailing the locations of allocated plots totaling 6.3 million square meters across several Riyadh neighborhoods, including Al-Qirawan, Al-Malqa, Al-Nakheel, Al-Nargis, Namar, Al-Rimayah, Al-Rimal, and Al-Janadriyah.

 

 

Business

EU-Mercosur Trade Deal Signing Delayed as Italy Demands More Time

Riot police intervenes during farmers' protest in Brussels, Belgium, 18 December 2025. EPA/OLIVIER MATTHYS
Riot police intervenes during farmers' protest in Brussels, Belgium, 18 December 2025. EPA/OLIVIER MATTHYS
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EU-Mercosur Trade Deal Signing Delayed as Italy Demands More Time

Riot police intervenes during farmers' protest in Brussels, Belgium, 18 December 2025. EPA/OLIVIER MATTHYS
Riot police intervenes during farmers' protest in Brussels, Belgium, 18 December 2025. EPA/OLIVIER MATTHYS

German Chancellor Friedrich Merz and EU executive chief Ursula von der Leyen expressed confidence on Friday that the European Union would be able to sign a contentious free trade agreement with South American bloc Mercosur in January, despite insufficient backing at an EU summit.

The European Commission president had been due to travel to Brazil for a signing ceremony on Saturday, but this was reliant on approval from a broad majority of EU members. A demand from Italy for more time meant it did not have enough support.

Von der Leyen still talked of a "breakthrough" after the summit ended early on Friday, Reuters reported.

"We need a few extra weeks to address some issues with member states, and we have reached out to our Mercosur partners and agreed to postpone slightly ‌the signature of ‌this deal," she told a press conference.

Brazilian President Luiz ‌Inacio ⁠Lula da Silva ‌told a press conference on Thursday he had learned of the delay of up to a month from Italian Prime Minister Giorgia Meloni and would consult Mercosur partners at their summit on Saturday on next steps.

Meloni said in a statement that Italy was ready to support the agreement once agricultural concerns were resolved, which she said could happen quickly.

Merz told reporters an extra few weeks for Meloni to win over her own government and parliament was not a problem. "This means that Mercosur can now definitely enter into force. Following the Italian government's approval, I remain hopeful that the French government may also decide to give its consent," he said.

Some 25 years in ⁠the making, the trade pact with Argentina, Brazil, Paraguay and Uruguay would be the EU's largest in terms of tariff cuts. Germany, Spain and Nordic countries say ‌it will boost exports hit by US tariffs and reduce reliance on China by ‍securing access to minerals.

But critics, including France and Italy, ‍fear an influx of cheap commodities that could hurt European farmers. The EU summit from Thursday sparked an anti-deal protest ‍by about 7,000 people, mostly farmers, which turned violent. Belgian police fired tear gas and water cannon after protesters hurled potatoes and rocks and smashed windows.

Poland and Hungary oppose the pact, while France and Italy remain nervous about increased imports of beef, sugar, poultry and other goods. The deal needs approval from EU governments, requiring a majority of 15 countries representing 65% of the bloc's population. Italy's stance is pivotal.

French President Emmanuel Macron, whose country is the EU's largest agricultural producer, said the agreement was unacceptable in its current form and that it was too early to say whether protections being ⁠put in place would meet France's conditions.

"We're not satisfied," he told a press conference. "We need to have these advances so that the text changes in nature, so that we can talk about a different agreement," he said.

In France, anger over the government's handling of lumpy skin disease, a virus affecting cattle, has deepened farmer discontent over issues including the Mercosur pact. Farmers in the southwest have blocked highways for days. Wary of nationwide protests like those two years ago, Paris is rushing to vaccinate cattle while maintaining its opposition to the deal.

EU lawmakers and governments reached a provisional agreement on Wednesday on safeguards to cap imports of sensitive farm products such as beef and sugar and soften resistance. The European Commission is also preparing a declaration pledging aligned production standards.

Macron said reciprocity was essential so the EU did not open its markets to cheap imports produced under looser rules, such as pesticide use.

Some tractors that jammed Brussels streets on Thursday carried banners echoing Macron’s skepticism.

"Why import sugar from the other side of the world when we produce the ‌best right here? Stop Mercosur," read one sign.

Business

TikTok Signs Deal to Sell US Entity to American Investors

FILE – In this July 21, 2020 file photo, a man opens social media app ‘TikTok’ on his cell phone, in Islamabad, Pakistan. (AP Photo/Anjum Naveed, File) 
FILE – In this July 21, 2020 file photo, a man opens social media app ‘TikTok’ on his cell phone, in Islamabad, Pakistan. (AP Photo/Anjum Naveed, File) 
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TikTok Signs Deal to Sell US Entity to American Investors

FILE – In this July 21, 2020 file photo, a man opens social media app ‘TikTok’ on his cell phone, in Islamabad, Pakistan. (AP Photo/Anjum Naveed, File) 
FILE – In this July 21, 2020 file photo, a man opens social media app ‘TikTok’ on his cell phone, in Islamabad, Pakistan. (AP Photo/Anjum Naveed, File) 

TikTok's Chinese owner ByteDance signed binding agreements to form a joint venture that will hand control of operations of TikTok's US app to American and global investors, according to a memo by TikTok CEO Shou Zi Chew seen by Reuters.

The deal, set to close on January 22, would end years of efforts to force ByteDance to divest its US business over national security concerns.

According to an internal memo cited by Bloomberg and Axios, TikTok CEO Shou Chew told employees that the social media company as well as its Chinese owner ByteDance had agreed to the new entity, with Oracle, Silver Lake and Abu Dhabi-based MGX on board as major investors.

Oracle’s executive chairman and founder Larry Ellison is a longtime ally of US President Donald Trump.

Chew said that ByteDance will retain around 20% of the new joint venture — the maximum ownership allowed for a Chinese company under the law.

The deal largely confirms a September announcement by the White House that said the new venture would meet the requirements of a 2024 law that threatened to ban the wildly popular app in the United States if ByteDance stayed majority owner.

The new set-up for TikTok is in response to a law passed under Trump’s predecessor, Joe Biden, that has forced ByteDance to sell TikTok’s US operations or face a ban in its biggest market.

US policymakers, including Trump in his first presidency, have warned that China could use TikTok to mine data from Americans or exert influence through its state-of-the-art algorithm.

Chew said the US joint venture would operate as an independent entity with authority over “US data protection, algorithm security, content moderation and software assurance.”

Trump in September had specifically named Oracle boss Ellison, one of the world’s richest men, as a major player in the arrangement.

Ellison has returned to the spotlight through his dealings with Trump, who has brought his old friend into major AI partnerships with OpenAI.

Ellison has also financed his son David’s recent takeover of Paramount and is involved in his son’s bidding war with Netflix to take over Warner Bros.