The new year 2021 began to shape the real estate scene by setting ceilings and frameworks for implementing the systems that were put in place to improve the image of the market, where the real estate sector is expected to reap the fruits of these efforts that were organized in the state institutions, may God support them, until the reform system came close to putting the final touches on development (the white land system as an example).
Continuing to implement the regulations, the Ministry announced the start of the first phase of land fees on the area located within the geographical scope of Madinah, and the cities of Abha and Khamis Mushait in the Asir region. It followed this by calling on owners of undeveloped land to register data on lands with an area exceeding 10,000 square meters through the electronic portal for undeveloped land fees, within a period of 6 months. The Ministry of Housing did not neglect seriousness and strictness in its approach to combating monopoly and freezing real estate wealth. The system gave those who had invoices issued a full year to pay or develop their lands, otherwise the Ministry will be forced to hold them accountable. The application will be extended to 17 cities.
Liquidation of undeveloped land
But the question remains: Is imposing fees alone sufficient to liquidate land or convert it into residential complexes to provide an additional source of diversification in the supply that suits the citizen at competitive and affordable prices? Is it possible to create strong and ambitious alliances between the three parties (owners, banks, and developers)? This would enable the owner who cannot escape the grip of fees and their consequences, unless the owner resorts to circumventing the system by subdividing the land and selling it (nominally) to acquaintances and relatives so that he does not own 10,000 square meters in one place. Therefore, we hope that the Ministry of Housing will, along with the implementation of the white land fees system, enact special regulations for a specific period that would incentivize and encourage investment in white land through alliances; so that new residential cities, suburbs, and neighborhoods are formed bearing the name of the alliance.
We affirm that motivation and encouragement can be beneficial and fruitful for everyone, yielding more positive results than imposing fees. Ideally, these two approaches should go hand in hand, so that the difference between those who are motivated and succeed, and those who are penalized and fail the test becomes clear. We hope the Ministry of Housing will adopt this approach of motivation.
