Land for sale in Ar Riyadh

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The latest update on land for sale in KSA

A lot has been going on in the Saudi real estate market, most prominant is the newly introduced 2.5% taxation law on undeveloped urban land. The 2020 National Transformation Program (NTP) - which was designed to diversify non-oil revenue - aims to make the economy more sustainable as the population grows, and with that comes a blueprint to create more jobs and provide more housing for the Saudi people. The annual white land tax regulation aims to do just that, promoting the development of un-used urban plots to increase the supply of affordable villas and apartments for sale in Saudi. This law was accompanied with the budget cuts across ministries, causing the Saudi housing market to decline, rest assured that it is a temporary roadbump in a necessary path to grow the property sector so it can match the rising demands. Implementing the land taxation must be critically monitored by both the government and private sectors - especially as the country is incurring budget cuts - whereby revisions should be applied when needed in order to reach the final objective.

To stimulate the home sale transactions, the government also recently introduced mortgage reforms which allow banks to lend upto 85% of the house value (as opposed to 70% preciously). This is a positive step that will make the purchasing of property more reachable, as people will only have to pay a 15% downpayment (opposed to 30% previously).

The abovementioned actions dictate how the government’s intentions are to simply provide more afforable housing and ease the payment schemes for the local population.

land for sale in KSA
 land for sale in Riyadh

Turning land for sale in Riyadh into affordable homes

There is much room for improvement in the current supply of properties in the Kingdom. Not only is there a shortage, but developments were not focusing on actual requirements of the local people. In previous years, there had been an influx of pricy new developments that are beyond the needs of the average Saudi citizen, and this is especially true for new developments within proximity of the city center. Residential projects for sale often consisted of several private villas in the same complex, but they were generally expensive which is why they sat on the market for quite a long time before getting sold or rented out.

The first step at closing the supply and demand gap is research and analysis. Both the public and private sectors must analyze the demographics, psychoraphics, and needs of the local and expat population, and create new developments of housing units accordingly. Should they focus on mini-building apartments, small villas, or tall residential buildings? To answer that question, the different segments of the Saudi population must be identified first, and the supply of new developments should be planned accordingly.

A positive indication is when developers built affordable villas for sale in Riyadh, precisely in the Northern regions of Al Yasmin and As Sahafa. New apartment complexes were also built, and they got filled up pretty quickly. However, the demand in the city (and the country as a whole) still far outweighs the supply, and a combined effort of both the private and public sectors will be required to effectively lead the closing this housine shortgage.