Riyadh Presses ahead with Housing Market Stabilization Through Real Estate Balance Measures

Residential units in Riyadh developed by Saudi Arabia’s Ministry of Municipalities and Housing. (SPA)
Residential units in Riyadh developed by Saudi Arabia’s Ministry of Municipalities and Housing. (SPA)
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Riyadh Presses ahead with Housing Market Stabilization Through Real Estate Balance Measures

Residential units in Riyadh developed by Saudi Arabia’s Ministry of Municipalities and Housing. (SPA)
Residential units in Riyadh developed by Saudi Arabia’s Ministry of Municipalities and Housing. (SPA)

Riyadh’s housing market is entering a new phase with the opening of applications for the second year of the Real Estate Balance Program, reflecting the Saudi capital’s drive to address housing market challenges by increasing residential supply while implementing regulatory and financing policies aimed at expanding homeownership.

The Royal Commission for Riyadh City (RCRC) announced Monday that applications will be accepted from August 16 through September 15 through the program’s online platform.

Housing costs

The program continues as Riyadh undergoes rapid population, economic and urban expansion, driven by major projects and accelerating investment, increasing the need for balanced growth in real estate supply to meet rising demand.

Real estate experts told Asharq Al-Awsat that by offering planned and developed residential plots at fixed prices, Riyadh is seeking to reduce one of the main components of housing costs and provide citizens with a more sustainable path to building their own homes.

The move could gradually ease price pressures stemming from limited land availability.

Financing and construction

Khalid Al-Jasir, a real estate specialist and President of Amaken International Group, said the program’s impact extends beyond the land market to financing, construction, building materials and housing-related services, supporting economic activity and deepening the investment cycle in the Saudi capital.

He told Asharq Al-Awsat that the program’s strength lies not only in providing land at set prices, but in addressing the root of the problem by increasing supply.

As more residential land becomes available in an organized manner, citizens gain more options and scarcity has less power to drive prices higher, he remarked.

“The program’s real success will become apparent over the medium term, when the allocated plots are turned into actual homes, rather than simply owned as land,” Al-Jasir stated. “The next phase should focus on facilitating construction and financing so the link between land and housing is completed.”

More balanced market

Real estate specialist and developer Ahmed Omar Basodan told Ahsarq Al-Awsat that extending the program into a second year sends an important message that tackling high housing costs requires a sustained approach rather than a temporary decision.

Riyadh is growing rapidly, meaning supply must continually keep pace with population and economic expansion, he stressed. The program’s most important impact, however, may extend beyond land prices to changing market behavior itself.

“When investors and developers realize that residential supply will continue to increase, it becomes harder to keep betting on land scarcity as a permanent driver of higher prices,” he explained. “Success will lie in creating a more balanced market that benefits citizens, developers and the economy at the same time.”

Narrowing the supply-demand gap

The second year is part of the program’s annual framework to increase the supply of planned residential land.

The RCRC aims to provide between 10,000 and 40,000 plots annually at prices not exceeding SAR1,500 per square meter, helping narrow the gap between supply and demand and support stability in Riyadh’s real estate market.

Applications are open to married Saudi citizens or those over 25, provided they have not previously owned property, have lived in Riyadh for at least three years and meet the remaining eligibility requirements.

The RCRC said eligibility is not determined by the order in which applications are submitted and that registration does not guarantee final acceptance. Applicants from the first year who were found eligible and entered the electronic lottery will automatically be included in the approved process for the second year.

All applications will undergo electronic verification. After the application period closes, the program will move through eligibility checks, announcement of results, appeals, an electronic lottery for eligible applicants and completion of off-plan sale procedures in accordance with regulations.

First results

Last year, the RCRC announced the results of the first electronic lottery for residential land purchases after completing eligibility checks and reviewing appeals.

The draw was overseen by an independent committee comprising representatives from the RCRC, Ministry of Justice, Real Estate General Authority, Riyadh Municipality and Saudi Data and AI Authority (SDAIA). Advanced technical systems were used to ensure fairness and equal opportunity among eligible applicants.

According to the RCRC, the result allocated residential plots totaling 6.3 million square meters, including sites within Riyadh’s existing urban fabric and others at locations still being designed. The plots are spread across Al-Qirawan, Al-Malqa, Al-Nakheel, Al-Narjis, Namar, Al-Rimayah, Al-Rimal and Al-Janadriyah, with each plot measuring 300 square meters.



IMF Says Engaging with Iraq on Preparing New Bailout Program

Central Bank of Iraq (INA)
Central Bank of Iraq (INA)
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IMF Says Engaging with Iraq on Preparing New Bailout Program

Central Bank of Iraq (INA)
Central Bank of Iraq (INA)

The International Monetary Fund on Thursday said it was engaging with Iraqi authorities as it prepares a new bailout program for the country, whose economy has been battered by the war on Iran.

The US-Israel war on Iran, launched in late February, plunged the region into conflict and saw Tehran's retaliatory action virtually block the Strait of Hormuz, a key energy supply route.

Iraq's economy is heavily dependent on its energy exports, which almost entirely rely on transport through the strait.

Before the war, the country was already facing acute fiscal constraints, and the IMF this month forecast its economy would contract by 16 percent this year.

"Our plan now is to engage with the authorities to understand better their priorities, how they want to address their vulnerabilities, and then to move ahead on how we can best support them with a program," said IMF spokesperson Julie Kozack at a regular press briefing in Washington.

Kozack cited the country's severe financing constraints from before the outbreak of the war, and said its very narrow non-oil revenue base was also putting pressure on the fiscal balance.

The last of Iraq's three most recent programs with the IMF ended in 2019.

It has a total of around $428 million in interest payments due to the Fund by 2030, according to IMF data.

IMF Chief Kristalina Georgieva first disclosed that Iraq had approached the Fund for a new program at the Fund's annual meetings in Bangkok earlier this month.

At those meetings, Georgieva lauded the resilience of global economic growth in the face of wars in Iran and Ukraine, but warned that outcomes were highly uneven with more vulnerable economies battered hard by the conflicts.


Iraq's Central Bank: Exchange Rate Gap Narrows to 9%, No New Currency Being Printed

Iraq's Central Bank Governor chairs a meeting on Thursday (Iraqi News Agency)
Iraq's Central Bank Governor chairs a meeting on Thursday (Iraqi News Agency)
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Iraq's Central Bank: Exchange Rate Gap Narrows to 9%, No New Currency Being Printed

Iraq's Central Bank Governor chairs a meeting on Thursday (Iraqi News Agency)
Iraq's Central Bank Governor chairs a meeting on Thursday (Iraqi News Agency)

Iraq's Central Bank Governor Nizar Nasser Hussein announced Thursday that the gap between the dinar's official exchange rate and its parallel-market rate had narrowed to 9%, down from approximately 24%, while denying reports that new banknotes were being printed.

Hussein made the remarks during a visit by the Iraqi Parliament's Investment and Development Committee to the central bank to discuss the repercussions of changes to the dollar exchange rate, their impact on economic and investment activity, and the challenges facing investors and local companies, according to a parliamentary statement carried by the Iraqi News Agency (INA).

The governor confirmed that no currency printing was underway, describing reports to the contrary as inaccurate. He also noted that the gap between the official and parallel-market exchange rates had fallen to 9%, as Iraq faces mounting financial and economic pressures stemming from the war involving Iran and disruptions to oil exports.

In early October, the Central Bank of Iraq raised the dollar's selling rate to the public to 1,520 dinars, from approximately 1,320 dinars previously, a move that devalued the dinar by around 15% against the dollar amid pressure on oil revenues and foreign currency inflows.

Iraq's public finances depend heavily on oil revenues, making export disruptions and declining foreign currency inflows major sources of pressure on the state budget and foreign exchange market.

During the meeting, the central bank outlined measures taken to support the economy, including assistance to state-owned and private banks in providing citizens with concessional loans ranging from 5 million to 15 million Iraqi dinars.

For its part, the Investment and Development Committee stressed the need to limit the impact of exchange rate changes on investment project costs, raw material prices and contractual obligations, as well as their repercussions for market stability and citizens' purchasing power.

The committee called for stronger coordination between the central bank, government agencies and the banking sector, streamlined bank financing procedures, and the removal of obstacles facing investors to ensure projects can continue without imposing additional burdens on businesses and citizens.

The developments come as Iraqi authorities seek to contain the economic fallout from the war amid mounting pressure on oil exports and public finances.

Iraq had requested financial support from the International Monetary Fund, which projected that the country's economy would contract by 16% this year, according to estimates cited in the report.


Riyadh Metro Opens New Horizons for Commercial Real Estate Investment

Men ride the Riyadh Metro heading to King Saud University Station in Riyadh (AFP)
Men ride the Riyadh Metro heading to King Saud University Station in Riyadh (AFP)
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Riyadh Metro Opens New Horizons for Commercial Real Estate Investment

Men ride the Riyadh Metro heading to King Saud University Station in Riyadh (AFP)
Men ride the Riyadh Metro heading to King Saud University Station in Riyadh (AFP)

Riyadh's public transport network is increasingly becoming a factor in real estate investors' calculations, with Saudi Arabia's rail services recording more than 40.9 million passengers during the third quarter of 2026. Of these, the Riyadh Metro accounted for 30.4 million riders.

This draws renewed attention to the attractiveness of commercial properties located near metro stations and the opportunities for cafés, restaurants, and retail outlets to benefit from passenger traffic. However, industry specialists note that assessing the metro's actual impact on rents and occupancy rates requires comparing property performance before and after operations began, while taking other market factors into account.

In this context, Khaled Al-Mobid, CEO of Menassat Realty Co., told Asharq Al-Awsat that the Riyadh Metro has begun to reshape the concept of a prime commercial location.

A desirable site is no longer limited to properties situated on major roads; ease of access through public transportation has become an additional factor enhancing investment appeal.

Al-Mobid added that average rents in Riyadh's major shopping centers reached approximately SAR 2,650 per square meter annually, reflecting growth of 1.2 percent, while occupancy rates remained stable at 91 percent during the first half of 2026. He stressed, however, that these indicators cannot be attributed solely to the metro.

He pointed to practical signs of the growing importance of transport-linked commercial activity, including the offering of 733 commercial units within the public transport network, in addition to opportunities available for cafés and financial services.

Metro Enhances the Appeal of Commercial Locations

Al-Mobid expects businesses that depend on daily customer traffic, particularly cafés, restaurants, and quick-service providers, to benefit from locations near the busiest stations. He believes proximity to metro stations will become a more important consideration for investors and developers when selecting sites and planning mixed-use projects.

He emphasized that the value of a commercial location in the future will not be measured solely by the number of cars passing by, but also by the number of people who can easily reach it without needing a vehicle.

A view of the Riyadh Metro's Blue Line emerging from the Financial District Station (SPA)

Measuring the Real Estate Impact Requires Market Comparison

For his part, Khalid Aljasir, a real estate specialist and chairman of Amaken International Group, told Asharq Al-Awsat that the launch of the Riyadh Metro represents a significant development in the city's infrastructure and is expected to gradually influence the real estate demand landscape, particularly in commercial areas that benefit from improved accessibility and higher user traffic.

Aljasir explained that proximity to public transport stations can enhance a property's investment appeal, although the extent of the impact varies depending on the location, the nature of the commercial activity, and the level of demand in the area.

He stressed that increases in rents or occupancy rates cannot be attributed solely to metro operations without analyzing other market variables.

He noted that measuring the metro's actual impact requires comparing similar commercial properties located near stations with those farther away, both before and after operations began. Metrics such as average rents, occupancy rates, and demand levels can help determine how improved accessibility affects real estate performance.

A view of the Riyadh Metro's Yello Line (SPA)

Accessibility Becomes a Key Consideration for Investors

Aljasir added that accessibility and integration with public transport networks are increasingly important factors when evaluating investment opportunities. Investors assess a property's ability to attract tenants and users, as well as how easily customers and employees can reach it, alongside traditional considerations such as location and size.

He noted that cafés, restaurants, retail stores, and daily-service businesses may benefit from sites experiencing steady pedestrian traffic near metro stations. Commercial offices may also gain from improved accessibility for employees and clients.

Furthermore, locations connected to public transport could become more attractive for mixed-use developments that combine commercial, office, and service functions.

Aljasir stressed that proximity to a station is not the sole determinant of investment success. Economic viability, rent levels, actual demand, the nature of the business, and overall site quality remain fundamental factors in decision-making.

He underscored the importance of studying the integration of public transportation and real estate development and evaluating its impact on expected cash flows and investment returns, rather than assuming that all properties near stations will experience the same increase in value or rental rates.