Saudi Arabia has more than 100 million square metres (sqm) of development-ready land in Riyadh as the government targets delivery of 300,000 residential units in the Saudi capital over the next three years, Minister of Municipalities and Housing Majed Al-Hogail said.

Addressing the Real Estate Future Forum on Monday, he said the authorities introduced fees on undeveloped plots and vacant properties to unlock idle land, issuing more than 60,000 invoices since the start of the year.

The Minister said homeownership rates in the Kingdom have increased from 47 percent in 2016 to more than 66 percent in 2025, adding that over 370,000 beneficiaries have received housing support under the Sakani programme in the first stage.

To widen access - particularly for younger buyers - the government has introduced alternative ownership models including rent-to-own, fractional ownership and real estate tokenisation. Saudi Arabia is also developing standards for property tokenisation through the Real Estate Registry.

Al-Hogail said financial market activity linked to housing has accelerated, with refinancing by Saudi Real Estate Refinance Company (SRC) exceeding SAR54 billion ($14.4 billion), enhancing lender liquidity and enabling affordable housing loans for citizens. SRC’s international sukuk programme – valued at 4.55 billion – attracted 1,000 investors from all over the world, he said.

The Minister confirmed that Saudi Arabia has activated its non-Saudi property ownership framework, allowing foreign ownership under a regulated regime.

He added that the Kingdom now operates one of the world’s leading smart real estate ecosystems, with around 80 percent of real estate transactions conducted digitally, and 13 digital platforms have served more than 35 million beneficiaries.

Real estate represents around 23 percent of gross capital formation in the Kingdom.

(Writing by Majda Muhsen; Editing by Anoop Menon) 

(anoop.menon@lseg.com)

Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa.