The implementation of the fee system for undeveloped land has led to a near-unanimous consensus that it is in the public’s best interest not to purchase at this time, until the market stabilizes and its trends become clear. Opinions varied regarding the system’s impact on land prices following its implementation; while some expected the real estate market and prices to be immediately affected by the decision, others remained cautious about the extent of that impact.
In the same vein, Khalid Bashweir, chairman of the Housing Committee at the Jeddah Chamber of Commerce, affirmed that the issuance of the white fees regulation will have a positive impact on more than 60 sectors in construction, development, and building, and will contribute significantly to market activity, particularly in the contracting and construction sectors, and the development sector will also experience continuous and rapid growth, Bashweir explained that the primary reason for imposing white land fees is to reduce the prices of land and residential units in line with citizens" incomes, so that prices are affordable relative to their income and commensurate with their needs.
Bashweir emphasized the need for firm implementation of the decision, which will help accelerate its positive effects in lowering land prices and reducing the cost of housing units for citizens, especially if the implementation phases are accelerated as the market transitions from one stage to the next until a balance is achieved between supply and demand. He also noted that the impact will extend to real estate prices for citizens, pointing out that the market had been stagnant in the recent period, but the issuance of the regulation has contributed to greater clarity in the market, which will help to stimulate buying and selling activity. Bashweir concluded his remarks by saying: "The decline in real estate prices will occur in gradual stages.”
Saleh Abdulrahman Al-Muhaisen, a real estate investor and chairman of the Real Estate Valuation Committee at the Madinah Chamber of Commerce, recommended against purchasing property and advised waiting until the situation becomes clearer during the current period, as there is a sincere effort and significant commitment on the part of the government to resolve the housing crisis and provide adequate housing for citizens. I believe it is essential that this effort be accompanied by cooperation from the authorities responsible for approving plans at the municipal level and other relevant agencies, and to facilitate rather than impose restrictions. There are dozens of plans awaiting approval that are currently stalled due to routine reasons and issues that can be overcome.” Al-Muhaisen added, “I also see the importance of reviewing building regulations and mechanisms and drawing on the expertise of more advanced countries in this area, such as Germany, where I observed advanced construction methods and techniques that make it possible to build a residential villa in a short period of time to a high standard of quality, I also urge the streamlining of the process for granting building permits, as well as the requirements regarding the number of stories and their increase—what is the problem with allowing six stories instead of four, and so on?
