Saudi Government Offers Riyadh Plots At Up To 84% Below Market

Riyadh, Saudi Arabia: The Saudi government, through the Royal Commission for Riyadh City, has begun offering residential land plots to Saudi citizens at discounts of up to 84 percent below prevailing market prices, as part of a broader strategy to stabilise Riyadh’s real estate market and address rising land and rental costs in the capital.

This week, the Royal Commission conducted an electronic lottery for residential plots via the Real Estate Balance platform, offering land at a fixed price of approximately USD 400 per square metre (SR 1,500).

More Than 10,000 Plots Allocated Across Eight Neighbourhoods

A total of 10,024 residential plots, covering approximately 6.38 million square metres, were allocated across eight neighbourhoods in Riyadh: Al-Qirawan, Al-Malqa, Al-Nakheel, Al-Narjis, Namar, Al-Rimayah, Al-Rimal, and Al-Janadriyah. Each plot measures 300 square metres, forming part of a planned residential supply programme aimed at improving affordability and market balance.

According to Al-Eqtisadiah, the fixed pricing represents discounts ranging from 16 percent to 84 percent compared to prevailing market rates in the selected districts. The offered price is also more than 50 percent below Riyadh’s average residential land price, which currently stands at approximately SR 3,200 per square metre.

The steepest discount was recorded in Al-Qirawan at 84 percent, followed by Al-Malqa and Al-Narjis at 78 percent, Al-Rimal at 58 percent, and Al-Janadriyah at 16 percent.

Part Of A Broader Real Estate Balance Strategy

The initiative forms part of Mohammed bin Salman’s five-point plan to restore balance to Riyadh’s real estate market after several years of sharp increases in land values and residential rents.

Under the programme, the Royal Commission aims to provide between 10,000 and 40,000 fully planned and developed residential plots annually over the next five years, all priced below approximately USD 400 per square metre (SR 1,500).

Eligibility Criteria And Anti-Speculation Measures

Eligibility for the programme is limited to married Saudi citizens or individuals aged 25 and above who do not already own residential property. To curb speculation and ensure the plots are used for genuine homebuilding, beneficiaries are prohibited from selling, renting, mortgaging or otherwise disposing of the land for 10 years, except for construction financing purposes.

Plots that remain undeveloped within the specified period will be reclaimed by authorities, with the original purchase value refunded to the beneficiary.

Read more: Saudi Arabia’s Property Market Shows Strong Q3 Momentum, Report

Complementary Measures To Increase Supply

Additional measures announced as part of the real estate balance strategy include lifting development restrictions on 81.48 square kilometres of land in northern Riyadh, restructuring the white land fee system, and freezing residential rent increases for five years.

Authorities have also committed to publishing periodic reports monitoring land and housing prices, with the aim of enhancing transparency and ensuring sustained market stability.

Addressing Long-Term Housing Demand

Housing experts estimate that Riyadh requires between 100,000 and 130,000 new housing units annually to meet population growth and demand. Observers have pointed to large-scale housing supply models in several Asian cities as potential benchmarks for accelerating delivery while maintaining affordability.

Together, the combined initiatives are intended to expand housing supply, improve affordability and enhance quality of life across Riyadh’s neighbourhoods, while supporting long-term urban sustainability and economic stability in the Saudi capital.