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.
