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Riyadh's housing market is entering a new phase as the Saudi capital pushes forward with its Real Estate Balance Program, now accepting applications for its second year. This initiative underscores Riyadh's commitment to tackling housing challenges by increasing the supply of residential properties while simultaneously implementing crucial regulatory and financing policies designed to expand homeownership among its citizens.

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The program’s real success will become apparent over the medium term, when the allocated plots are turned into actual homes, rather than simply owned as land.

The Royal Commission for Riyadh City (RCRC) announced that applications for the program will be open from August 16 to September 15 via its online platform. This program continues amidst Riyadh's rapid population growth, economic expansion, and urban development, fueled by major projects and accelerating investments. The increasing demand necessitates a balanced growth in real estate supply to meet these burgeoning needs.

Real estate experts highlighted that by providing planned and developed residential plots at predetermined prices, Riyadh aims to reduce a significant component of housing costs. This strategy is expected to offer citizens a more sustainable pathway to building their own homes, potentially alleviating price pressures caused by limited land availability. Khalid Al-Jasir, a real estate specialist, noted that the program's influence extends beyond land provision to financing, construction, and related services, thereby supporting economic activity within the Saudi capital.

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The next phase should focus on facilitating construction and financing so the link between land and housing is completed.

Al-Jasir emphasized that the program's true strength lies in addressing the core issue of supply. "As more residential land becomes available in an organized manner, citizens gain more options and scarcity has less power to drive prices higher," he remarked. However, he cautioned that the program's ultimate success will be measured over the medium term, when these allocated plots are transformed into actual homes. He suggested that the next phase should prioritize facilitating construction and financing to complete the land-to-housing link.

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When investors and developers realize that residential supply will continue to increase, it becomes harder to keep betting on land scarcity as a permanent driver of higher prices.

Real estate specialist and developer Ahmed Omar Basodan added that extending the program into a second year signals a sustained approach to managing high housing costs. He stressed that Riyadh's continuous growth requires supply to consistently match population and economic expansion. Basodan believes the program's most significant impact might be its potential to reshape market behavior. "When investors and developers realize that residential supply will continue to increase, it becomes harder to keep betting on land scarcity as a permanent driver of higher prices," he explained. The ultimate goal, he stated, is to create a more balanced market that benefits citizens, developers, and the economy concurrently.

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Success will lie in creating a more balanced market that benefits citizens, developers and the economy at the same time.