Saudi prince vows to stop ‘unacceptable’ rise in property prices
The comments come as the country prepares to launch a new law in 2026 that is set to make it easier for foreigners to buy property
[RIYADH] Saudi Arabia Crown Prince Mohammed bin Salman said that he will try to halt an “unacceptable” increase in property prices, highlighting the kingdom’s concerns about a soaring real estate market and its impact on people’s living costs.
“The strong economic growth the kingdom is experiencing today has been accompanied by a rise in residential property prices in some areas of the kingdom to unacceptable levels,” the de facto Saudi ruler said in a rare national address on Wednesday (Sep 10) night.
He did not elaborate on specific policies, but said changes would be aimed at reducing costs and providing a more diverse range of housing options for citizens and foreigners.
The comments come as Saudi Arabia prepares to launch a new law in 2026 that is set to make it easier for foreigners to buy property. The Gulf nation began issuing residential mortgage-backed securities last month, a move meant to create easier access to financing for property purchases.
Saudi Arabia’s real estate market has surged since 2019, with home prices in Riyadh nearly doubling amid an influx of demand from new residents, according to real estate consultancy Knight Frank.
The city witnessed a slowdown in the first half of this year as buyers delayed purchases, the firm said. Other cities, including Madinah, still saw values and deals jump.
In February, Saudi Arabia allowed foreigners to invest in publicly traded companies owning real estate in Madinah and Mecca, two cities that are home to Islam’s holiest sites.
Many affluent Muslims living outside the kingdom are interested in owning property in Madinah and Mecca, Knight Frank has said. That demand has spurred a wave of new development in the cities, including the Rua Al Madinah mega project owned by Saudi Arabia’s Public Investment Fund. BLOOMBERG
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