Saudi Arabia is adding a new regulatory tool to its real estate reform program as it moves to rebalance supply and demand, expand housing stock and draw more private-sector investment into urban development. The decision allows investors to develop planned land and build homes for beneficiaries of developmental housing in exchange for ownership of a share of the land. The model is designed to unlock underused land, speed up housing projects and support the goals of Saudi Vision 2030, while strengthening long-term stability in the property market. A real estate specialist said the decision creates a more flexible financing and development model that could improve land use, encourage developers to enter developmental housing projects, shorten delivery times and increase the number of homes reaching the market. Khalid Al-Jasser, a real estate specialist and president of Amaken International Group, told Asharq Al-Awsat that the decision marked “an important step toward improving the efficiency of the real estate market and increasing housing supply by creating a more effective regulatory environment that stimulates property development and accelerates project delivery.” Reducing obstacles facing developers and investors would directly accelerate land development and bring more homes to market, he said. That would support targets to raise homeownership among Saudi citizens and meet growing demand across the kingdom. Al-Jasser said the decision could also bring the market closer to a balance between supply and demand. A larger housing stock would ease price pressures caused by limited supply, he said, “supporting market stability over the medium and long term.” Greater competition among developers would also push them to offer a broader mix of homes across different sizes, prices and quality levels, he said. “This would give beneficiaries wider choices suited to their needs and purchasing power, while improving the efficiency of the real estate sector and increasing its appeal to investors,” Al-Jasser said. He said the decision’s impact would depend heavily on the speed of implementation and the continuation of government initiatives supporting the property sector. Combining regulatory incentives with private-sector partnerships, he added, was “one of the most important factors” in advancing sustainable urban development and meeting housing program targets. The decision comes as Saudi Arabia’s property sector gathers momentum, supported by regulatory reforms and major projects aimed at making better use of land, accelerating development and providing a wider range of homes while preserving market stability and strengthening competition. Saudi Arabia is continuing to advance toward its Vision 2030 target of raising homeownership among Saudi families to 70% by the end of the decade. Specialists say the new model could provide another boost to housing supply and help sustain the growth needed to meet Vision 2030 targets in the coming years.
