Recommendations to create a real estate financing platform and market stability solutions
The speakers in the symposium emphasized the importance of adopting the concepts of smart urban planning, empowering national competencies, stimulating qualitative real estate investment, paying attention to the modern Saudi architectural identity that combines originality and the spirit of the times, in addition to activating stimulating legislative systems, enhancing partnerships with research centers and universities, supporting easy housing projects and expanding infrastructure in secondary cities.
The most prominent recommendations came as follows:
1- Enhancing the partnership between the public and private sectors to implement the urban vision of the Kingdom.
2- Adopting systems and legislation stimulating for long-term real estate investment.
3- accelerating the application of intelligent urban planning concepts and the digital governance of cities.
4- Supporting easy housing projects, taking into account environmental and economic sustainability.
5- Enabling Saudi competencies and localizing the urban planning and architecture industry.
6 – Encouraging applied studies and research to support decision makers.
7 – Preserving the national architectural identity in new development projects.
8- Focusing on the development of secondary cities and the distribution of development geographically in a balanced manner.
Today, a press conference was held in light of the accelerating, rapid variables taking place in the real estate sector in the Kingdom of Saudi Arabia, and with the emergence of major challenges that require radical solutions, the supreme directives come from His Highness Crown Prince Mohammed bin Salman – may God protect him – as a major motivation to reshape the real estate and population scene, in a way that enhances social justice and achieves the targets of Vision 2030.
The symposium was held with the aim of monitoring the repercussions of these directives on the market, and reviewing the most prominent opportunities and challenges from academics, developers and consultants in the sector.
The opinions of the participants in today’s symposium agreed that the Saudi real estate market is going through a stage of articulated transformation, which needs courageous and innovative interventions as led by the wise leadership.
Everyone considered that the recent decisions regarding imposing fees on white lands and opening new lands at thoughtful prices represent a gateway to a new era of sustainable urban development, based on balance between investor interests and citizens ’needs, and between protecting the national identity and achieving urban expansion.
White lands
The real estate adviser Khaled Barrechid said: “The fees on the white lands issued by the Council of Ministers, which increased from 2.5% to 10%, have several determinants, and will be determined after the regulations are issued.”
He added that buying lands in vast areas and then holed them for years without developing development, raising land prices, and reducing the opportunities to build new housing. This gives the impression that the holes of these lands do not want to develop the country, which led to the rise in land prices in Riyadh, bringing the price of a meter to 17,000 riyals per square meter.
He continued: “The orders of Crown Prince Muhammad bin Salman – may God protect him – came to open 81 million square meters north of Riyadh in the real estate market, and to determine the price of a meter at 1,500 riyals, while giving priority to those who do not have lands. He explained that the problem of white lands lies in its occurrence inside the cities and in the urban range, where it is not built, not exploited or sold, stressing that the issue of monopoly ended in the shadow of these decisions.
The difficulty of financing
Professor at the Department of Urban Planning at King Saud University, Prof. Dr. Walid Al -Zamil, said in his intervention during the symposium: “The directive of His Highness the Crown Prince – may God protect him – By developing the real estate sector system, in addition to its generous donation to support the development sector, which is one of the vital sectors that target the low -income groups, this category that we are sometimes called is sometimes “Extreme Low-Income” Or the most needy families, they face great challenges, especially in the major cities, where land prices are outside the limits of their economic capabilities. It also suffers from difficulty in obtaining the necessary financing to own housing. “
He explained that the generous guidance and support provided by His Highness the Crown Prince would create a qualitative shift in the development housing system, not only in terms of quantity by producing housing units, but also in terms of type, by producing units that are compatible with the needs of the population in social, economic and environmental aspects.
D. Walid Al -Zamil
He added that the concept of development housing today must develop and in line with these initiatives, so that it is not limited to providing housing for the most needy families, but extends to include human development, through the distribution of these units in a way that takes into account social integration, and the housing associations that study the cases of beneficiaries and understand their reality are involved.
Development housing
A specialist in the organizational leadership in the real estate sector and the real estate writer Dr. Majid Al -Rukban said that directing His Highness the Crown Prince to increase the percentage of white land fees will have – God willing – a positive impact on the real estate market.
He added that this procedure will pressure the owners of residential lands to take one of the following options: Either pumping lands in the market by selling, developing them, or paying fees. All of these options are positive, whether in terms of enhancing the supply in the real estate market, supporting real estate development, or increasing the state’s financial revenues. These revenues are often directed to support development housing projects, which enhances the national economy in an interconnected way
D. Majid Al Rukban
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Rukban believes that this market faces unique challenges that require unconventional solutions. Leadership – may God protect her – realized the necessity of serious intervention to make retaining the unexploited lands costly, which causes its owners to get rid of them through sale or development. In Riyadh, we are also facing the growing demand challenge, which is exacerbated by conflicting policies, such as stopping some real estate projects and at the same time pumping soft loans. This situation has led to a significant increase in prices during the past two years, and if this trend continues, it may lead to a real estate crisis that affects the entire sector.
High prices
The consultant specialized in real estate development, Eng. Abdel Nasser Al -Abdullatif, confirmed that the support of His Highness the Crown Prince was an urgent and fast intervention to ensure the balance of the real estate market in the Kingdom.
He explained that the market witnessed in the recent period significant rises in prices, accompanied by the blocking of some real estate and lands from selling, and reluctance to land owners and real estate developers for offering them in the market. This situation is caused by a daily acceleration in prices, and the absence of clarity in the services provided, which increased the complications of the sector.
M. Abdel Nasser Abdel Latif
He pointed out that the leadership’s directives came as an effective solution to address these challenges, as it contributed to calming the market and restoring confidence. It is expected that the effects of these procedures will appear on two levels: the first is in a state of caution and anticipation among citizens, beneficiaries and developers, and the second is related to activating the standards of white land fees, which will stimulate real estate development and achieve concrete results..
Various opportunities
The director of the Geems Information Systems Office at King Abdulaziz University, Dr. Rayan Sehairi, expressed his pride and pride in being a Saudi citizen who lives under a wise leadership that achieved the targets of vision 2030 Before its date, to turn it into a tangible reality and a life approach for Saudi society and residents on the land of the Kingdom.
He praised the great efforts made to achieve this vision, which positively reflected in promoting the quality of life and developing the urban scene in Saudi cities.
D. Ryan Sehiri
He explained that the white lands and urban spaces constitute great proportions in the major cities, with a percentage of 50% of the area of Riyadh, 61% in Jeddah, and 41% in Medina, with similar rates in Dammam, based on the data of the Ministry of Municipal and Rural Affairs and Housing.
He stated that these proportions highlight the size of the challenge and the great opportunities available to develop these lands during the five years to the next ten years, stressing that the decisions to market these lands, which were issued during the past two years, aim to improve the urban scene and the quality of life, which reflects the close bond between the quality of life and urban development.
He referred to the decision issued by His Highness the Crown Prince in the beginning of 2025, regarding the obligation of the competent authorities to implement 19 urban models that reflect the identity of the Kingdom.
He noted that this decision is not limited to the local level, but rather carries a global message that confirms Saudi Arabia’s commitment to its authenticity and cultural heritage. He explained that the Kingdom, with its geographical diversity and a vast area, embraces multiple urban identities such as Najdi, Hijazi and East style, and these identities must be embodied in buildings built on white lands.
He explained that preserving the urban identity is not limited to the facades, but rather goes beyond linking the past to the present, and transferring this legacy to future generations.
He added that the vision of a Saudi child of a modern Najdi architecture in Riyadh, or his visit to the historical grandmother and his view of the Rawashin, will be established in his mind the importance of heritage and originality, pointing out that this trend led by His Highness the Crown Prince will constitute a legacy that enhances the Kingdom’s position globally, especially with its hosting of major events such as the Asian Cup, the World Cup and Expo.
High fees
The real estate developer, Eng. Hamid bin Hamri, stressed that the prediction of the results of the decisions to impose fees on white lands may be premature, due to the absence of the executive regulations and organizations expected to be issued within 90 days.
He explained that the property is one of the most important gains of citizens, as many seek to invest in it as a way to secure their future. However, it is considered that imposing high fees on white lands, whether raw or developed, may be an unfair procedure in some cases.
M. Hamed bin Hamri
He pointed out that the citizen who owns an inherited or acquired land, with large areas such as 5,000 square meters, should not be described as the “chopped” of the property, nor is it forced to dispose of his property in an unclear way or under financial pressure.
He noted the importance of motivating citizens and companies to develop lands instead of forcing them by imposing exorbitant fees.
He called for the launch of national programs for financing and development, which includes partnerships between the public and private sectors, to support landowners in investing their property. He stressed that many citizens lack development experience, and they may be misleading from unrealistic contractors or ideas, which requires the provision of awareness and financing programs that facilitate the development process..
Bin Hamri highlighted the challenges of the real estate market in Riyadh, which were exacerbated by three main factors during the last period: stopping the sukuk, removing properties, and restricting the offer.
He said that these factors led to the scarcity of supply and the high price of land. Although the suspension was raised later, the prices have reached very high levels. He praised the preservation of royal instruments as a basic national tool that provides safety for investors, considering that canceling the sukuk was a dangerous decision that was avoided thanks to the intervention of the concerned authorities.
Motivational programs
The real estate counselor Imad Al -Dalijan stressed that the recent decisions of His Highness the Crown Prince represents a strong boost for the hurry of real estate development in the Kingdom, while emphasizing the need to strengthen partnerships and awareness programs to achieve the desired goals. Certainly, the decisions to impose fees on white lands will contribute to moving the real estate market directly, as they will pressure the landowners to develop or offer for sale.
He pointed out that these decisions, which coincide with Vision 2030, will generate great economic opportunities, including creating direct and indirect jobs, and meeting the needs of various segments of Saudi society. He explained that the economic momentum resulting from these steps will achieve tangible benefits, especially since the real estate sector moves more than 120 economic activities directly.
M. Imad Al -Dulajan
He stressed the necessity of launching motivational programs and partnerships between real estate developers and landowners, instead of relying only on imposing fees. He explained that many landowners lack experience in real estate development or corporate control, which requires the provision of awareness programs and financing facilities.
He pointed out that these programs, if applied effectively, will turn the white lands into sustainable development projects, instead of remaining a burden that the angel is transmitting as a “fire ball”.
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