Abdullah Al -Hammad, Chairman of the Actual Property Authority
The top of the Normal Actual Property Authority, Abdullah Al -Hammad, mentioned that the hire market is without doubt one of the most vital and most influential markets in folks’s lives, and with a more in-depth look to grasp actuality and formulate options. We see that the rental market in Riyadh contains greater than 1.07 million rental items, together with 838 thousand housing items, and 332 thousand industrial items.
Al -Hammad added throughout a authorities communication convention at this time, that these items are owned by about 200 thousand proprietor between people and firms, They’re distributed as follows:
– 84 % have housing items, and the biggest of them owns 3200 items, equal to 0.4 % of the full housing items.
– 16 % have industrial items, and the biggest proprietor has items not exceeding 2,600 items, equal to 1 % of the full industrial items.
Al -Hammad mentioned that, in keeping with the up to date information for 2025, we discover that fifty % of them personal just one housing unit, whereas 19 % have two items, in comparison with 7 % of those that personal greater than 10 items.
The top of the Actual Property Authority emphasised that these numbers point out that there isn’t any monopoly within the rental market.
He added that the rental market is extensive and diversified, not dominated by one social gathering, and it’s removed from monopoly, however the absence of monopoly doesn’t imply that there aren’t any different challenges, because the market has confronted unacceptable heights in actual property costs, together with rental costs because of the scarcity of actual property provide in trade for the growing demand, which is without doubt one of the most vital causes for fast development in costs, and subsequently the directives of the Crown Prince have been clearly outlined, outlined by the aim: “complete actual property steadiness.”
Al -Hammad emphasised that by way of the in -depth research, it was discovered that the markets which are going by way of an financial renaissance might witness important will increase in costs when the demand will increase and the availability decreases, as occurs in some international cities, and worldwide experiences – which have been topic to the research – confirmed that the procedures targeted on coping with just one aspect with out all the results, whereas the directives within the Kingdom to realize actual property steadiness have come to be a complete therapy that was handled all. The features make sure the enhancement of actual property provide, a sustainable resolution that we search to realize throughout the coming years, God keen.
The top of the actual property physique mentioned: We deepened the evaluation of the native market with its particulars and privateness, and we reviewed international experiences precisely, and we recognized the event reservoirs in every expertise, so we got here out with a complete and balanced mannequin that exceeds the negatives that the nations of the usual comparisons confronted; A mannequin that takes under consideration the stimulation of actual property provide, limits inflation, and is characterised by a number of paths in keeping with time frameworks, making certain the soundness and steadiness of the actual property market.
He mentioned that the common rulings that have been issued to manage the connection between the lease and the tenant are a change within the governance of the actual property market that enhances confidence, and establishes a extra disciplined and sustainable market, and maybe probably the most outstanding factor that distinguishes these provisions is that it got here in keeping with main foundations, which embodies an built-in imaginative and prescient to realize steadiness within the rental market.
Starting with governance and confidence enhancing: The duty to doc the rental contracts by the lessor comes on a rental platform, along with the actual property mediator, the supply of the best to registration for the tenant and the opportunity of objection to the opposite social gathering inside 60 days, to boost confidence and protect rights.
As for stability and high quality of life: The suspension of the annual improve within the worth of the taxi inside the metropolis of Riyadh comes for a interval of 5 years, and to put in the worth of the taxi for the vacant actual property in keeping with the final “hire” contract, and to prepare the automated renewal controls of contracts with the regulation of the powers of non -renewal and that they’re restricted to particular circumstances, to offer households reassurance in housing, and the services are given stability and the promotion of economic planning with a transparent imaginative and prescient of a transparent imaginative and prescient To make sure the success of tasks, particularly entrepreneurs or rising and medium enterprises tasks.
With regard to steadiness and adaptability: Empowering the proprietor comes from the best to object to the rental worth in circumstances of elementary restorations or previous contracts in keeping with an elaborate governance that ensures the balanced justice between preserving the rights of the tenant in stability, and enabling the proprietor to profit from growing his property and sustaining their high quality and sustainability.
And in censorship and compliance: The imposition of economic fines comes, whereas obliging the violators to appropriate the prosecutions and compensate the affected folks, and to approve rewards for these whose violations quantity to twenty% of the worth of the violation whether it is confirmed, to determine a strict regulatory system wherein society participates in controlling the market, and promotes compliance.
With this totalitarianism, it’s certain that what has been constructed is a singular mannequin that mixes the power of the group with the flexibleness of the appliance, and locations a strong basis for the soundness of the actual property market, its justice and its consumption.
He added that one of the crucial outstanding enabled this mannequin: Expertise, represented within the “hire” platform, which turned from a mere documentation software, to an built-in rental journey that begins from documentation, extends to protect rights, comply with up obligations, and scale back conflicts.
To this point, the platform has documented greater than 13 million contracts, at a charge of 4200 contracts per day, and has supplied about 40 million digital operations from 2017 to the primary half of 2025.
Al -Hammad affirmed that documenting the rental contracts within the “hire” platform is to stick to the provisions issued, which is the dependable assure to protect the rights of all events, and that any contract or dealing takes place outdoors the “hire” platform, in addition to it’s an express violation of the provisions, which isn’t used to it neither a system nor a regulation.
