The Saudi real estate market is moving toward achieving new price balances, driven by strict regulatory measures, most recently the approval by the General Authority for Real Estate of a classification schedule for regulatory violations aimed at strengthening oversight of the relationship between landlords and tenants.
Real estate prices in several neighborhoods across Riyadh recorded varying declines over the past month, with some areas witnessing drops of up to 36%. These included districts such as Al-Mahdiyah, Hittin, Al-Qirawan, and Al-Aridh, according to data from the “Aqar” platform and as reported by Okaz newspaper.
Real estate specialist Khaled Al-Mubaid stated that regulating the relationship between landlords and tenants represents a fundamental shift in the structure of the real estate market, as decisions are now based on clear regulatory and economic indicators rather than speculation or poorly studied expectations.
Al-Mubaid added that the current market movement represents a positive correction that helps reorganize the balance between supply and demand, enhances market efficiency, and distinguishes projects with real intrinsic value from those built on temporary conditions or unsustainable factors.
He expected the coming phase to witness a more stable market, with improved product quality and greater pricing discipline, noting that this would benefit end users and contribute to strengthening investor confidence in the real estate sector.
The new violations schedule stipulates the imposition of escalating fines for unjustified rent increases or failure to register lease contracts. It also includes penalties related to not renewing contracts or evicting tenants in ways that violate regulations, while guaranteeing the right of affected parties to seek compensation.
