Many economic writers who are not specialists in real estate expect a very sharp decline in real estate prices following the implementation of the vacant land tax system, which they believe will help bring prices back to their true levels, as they consider current prices to be inflated.

Let us discuss this from a scientific and practical perspective, given that the Ministry of Housing has relied on the Saudi Authority for Accredited Appraisers and authorized it to form committees to appraise vacant land in preparation for imposing the fees. Real estate appraisals will limit the overvaluation of property prices (if any) and will largely prevent fraud against installment plan companies and banks, thanks to the reliance on experienced and trustworthy real estate appraisers.

We cannot deny that there will be conflict between property owners on one side and the accredited appraisal authority on the other regarding the actual or current value of the property; Based on this, there must be regulations and guidelines for real estate appraisers provided by the Authority, and a balance must be struck between quality (expertise, integrity, and accuracy) and cost.
It is well known that the real estate market was not previously subject to any scientific valuation system, and reliance was placed solely on personal opinions and rumors circulating among citizens and industry professionals.

Everyone agrees that real estate valuation is the process of quantifying value and assigning the property in question its actual value at the time of valuation, whether that value pertains to rent, sale, or mortgage; and in the case of fees, it will be limited to the sale. From my personal perspective, valuation will empower the sector and provide it with stability, and shield it from suspicions and instability that negatively impact the real estate market—situations through which some have found an opportunity to undermine real estate developers for their own ulterior motives, as if they have forgotten or chosen to ignore the invaluable service these developers provide, which has contributed to thethe nation and its citizens.
Useful information: (Under the U.S. system, appraisers are divided into only two categories: licensed appraisers, who are permitted to appraise properties valued at less than $250,000 and are required to hold a diploma or have completed an intensive training course, and the other category is a certified appraiser, who is authorized to appraise properties valued at more than $250,000), which I hope will be implemented in the appraisal of undeveloped land.

Finally, we would like to draw the reader’s attention to the fact that although the real estate market is considered one of the strongest markets and economic sectors in the Kingdom, it is not developed in line with global market practices or those of neighboring countries; however, it has the potential to develop as regulations are enacted that are capable of regulate the pace of commercial activity within it, as the haphazard nature of this sector must come to an end. This leads us to the need to call for laws and regulatory bodies capable of regulating and defining its direction, which will in turn have a positive impact on the national GDP, on consumers seeking housing, and on investors looking to achieveprofits without risking their capital.