He explained that although vacant land prices are expected to decrease by five percent to 15 percent in 2025, rejecting the appeals against the Vacant Land Law is not enough to adjust prices to match the citizens’ financial capabilities. “The average price of a house is estimated at around KD340,000 and land at KD300,000. These figures far exceed the purchasing power of citizens, especially given the accumulation of housing grant applications over many years and the fact that rent consumes more than 25 percent of citizens’ salaries,” he elaborated. He stated that even if the Constitutional Court upheld the law and its implementation in January 2026, the real estate market is subject to the supply and demand principle. “While there has been an increase in the supply of residential land, demand is typically driven by investors rather than ordinary citizens who are still unable to afford private housing. Therefore, the decision of the Constitutional Court will have a partial, rather than a complete, impact,” he clarified. He said the citizens have certain options -- selling or developing and constructing properties exceeding 1,500 square meters. “In this case, will development include construction in accordance with the regulations of the State Ministry for Municipality Affairs and other relevant authorities? Or will some resort to registering their properties under other people’s names to avoid escalating fees?

Moreover, real estate researcher Abdulrahman Al-Hussainan agreed with Al- Dulaijan’s opinion regarding the partial impact of the law on private housing prices, emphasizing that a realistic market analysis does not justify expectations of sharp or dramatic price drops. He stated “I do not anticipate a remarkable decline in private housing prices, while claims about 50 percent decrease in the coming period are inaccurate. While it is true the sector experienced 20 percent decline in 2025, after the rejection of the appeal against the Vacant Land Law, the total decrease will not exceed 25 percent. This means the expected additional impact is no more than five percent. Price correction will not return the market to the previous levels demanded by citizens.” Al-Hussainan confirmed that the Constitutional Court’s ruling led to unexpected activity in the commercial and investment sectors.

“However, it neither disrupted the market nor shocked landowners. On the contrary, many landowners anticipated the rejection of the appeal from an early stage and had already started preparing for it by constructing on their plots in accordance with municipal regulations or by restructuring their real estate portfolios to minimize their exposure to vacant land fees,” he added. He pointed out that these pre-rule preparations acted as a buffer for the market. He said “the market today is more mature than it was in the initial shock phase and there is rationality in investment behavior. Thus, we will not witness a wave of panic buying or haphazard sales, but rather calculated and deliberate steps.” He stressed that real change requires other parallel steps. He indicated that “implementing the Vacant Land Law is a crucial step, but it will not enable citizens to own private housing. The equation requires activating new financing tools and restructuring land management policies to make houses affordable for citizens.”