Property rental rules underway: Al-Hogail

Saudi Arabia’s Minister of Municipal and Rural Affairs and Housing, Majid Al-Hogail, said Riyadh needs between 120,000 and 130,000 new housing units annually due to strong demand, while the market currently supplies only 40% to 50% of that need.

He said recent government measures to balance the real estate sector and release more land in Riyadh are expected to stabilize prices and better align them with citizens’ purchasing power, helping boost supply.

Speaking at a government press conference on Saudi Vision 2030 achievements, Al-Hogail said the National Housing Co. and its local and foreign partners will deliver 38% of the city’s housing needs.

The company has been instructed to increase production to 60,000 units in Riyadh, with several units priced below SAR 450,000 before subsidies, targeting affordability for middle-income Saudis.

Al-Hogail said work has begun on a law to regulate the relationship between landlords and tenants. The framework is designed to protect both sides, support investment in the sector, and diversify rental options across residential and commercial properties.

He added that the updated White Land Tax regulations will be issued very soon, before the 60-day deadline.

The minister said the size of the real estate sector has grown from SAR 170 billion to more than SAR 850 billion in 2024.

He added that the ministry has worked to redefine cities as balanced, green, and smart environments that meet residents’ needs.