The Saudi real estate market is witnessing notable shifts toward achieving price balance, driven by a series of stringent regulatory decisions aimed at better regulating the real estate landscape. One of the latest steps in this direction is the adoption by the General Real Estate Authority of a classification schedule for regulatory violations, which seeks to organize the relationship between landlords and tenants in a more fair and effective manner.
In this context, real estate prices in some neighborhoods of Riyadh have seen a remarkable decline over the past month. Areas such as Al-Mahdiyah, Hittin, Al-Qirawan, and Al-Arid recorded decreases of up to 36%, according to reports issued by the Aqar platform.
On the other hand, the city of Qiddiya is preparing to welcome visitors on December 31 with the opening of the highly anticipated Six Flags theme park, which is expected to add further attraction and diversity to the area.
Commenting on these developments, Khaled Al-Mubaid, a real estate expert, told Okaz newspaper that the current direction toward regulating the relationship between landlords and tenants represents an important step in restructuring the Saudi real estate market.
He pointed out that current decisions are no longer based on speculation or poorly studied visions, but rather on clear regulatory and economic foundations. He emphasized that these changes reflect a corrective path that enhances the balance between supply and demand and highlights the importance of projects that offer real value compared to those that benefited from exceptional circumstances.
Al-Mubaid expects the coming phase to witness greater market stability and an improvement in the quality of real estate products, along with increased discipline in rental pricing. He also expressed optimism that these reforms will primarily serve the end beneficiary and strengthen investor confidence in the Saudi real estate market.
It is worth noting that the violations classification schedule launched by the General Real Estate Authority includes the imposition of escalating fines for violations such as illegally raising rents and failing to register lease contracts.
It also covers other violations, including failure to renew contracts on time or evicting tenants in ways that violate applicable regulations. In addition, the schedule provides protection for affected parties by enabling them to claim compensation for any damages they have incurred.
