Saudi Minister of Municipal and Housing Affairs, Majid bin Abdullah Al-Huqail, emphasized the importance of balanced real estate prices in Saudi Arabia to ensure the continued momentum of growth in the sector.

In an interview with “Al Arabiya Business,” Al-Huqail stated that price balance will enable developers to acquire land at reasonable prices, which will reflect on the final product offered to citizens at affordable prices.

He added, “This, in turn, will stimulate buying and selling activity more significantly and positively affect multiple sectors such as contracting and engineering offices, as well as the entire value chain related to real estate development.”

He expressed optimism about the sector’s future, noting that efforts in the housing program and the development of the real estate sector in the Kingdom have received wide international interest, as seen in the recent “Cityscape” exhibition.

He also mentioned that the financing market has seen significant development, and the global acceptance of Saudi sukuk confirms confidence in this sector.

Responding to developers’ questions about expected price increases, Al-Huqail said his view is the opposite, as he believes that real estate developers and property owners have already begun reaching new negotiation points, which will lead to an increase in the supply of housing units.

Regarding expectations for decline rates, Al-Huqail said it is difficult to predict a specific percentage, but the sector is on the right track according to the targeted plan.

81 Million Square Meters of Land in Riyadh Now Available

Minister of Municipal and Housing Affairs, Majid Al-Huqail, stated that the ministry is working on launching a build-to-rent program as one of the main programs to increase real estate supply and expand options for citizens and investors.

He explained that rents accelerated since 2023, but the pace of increase in 2025 reached unacceptable levels, prompting intervention through new regulatory provisions to regulate the relationship between landlords and tenants, describing this step as a “qualitative leap contributing to market stability.”

He noted that regulatory intervention focused especially in Riyadh due to the circumstances it is experiencing, while continuing to monitor rental conditions in other cities. He also revealed that about 81 million square meters of land north of Riyadh have become available for disposal after the lifting of the freeze, opening the door for launching new projects in the area.

He pointed out that Crown Prince Mohammed bin Salman’s directives aim to achieve a real estate balance that protects citizens, residents, and investors, noting that new policies in the real estate sector will enhance investments and support market stability.