The market value of the recovered properties is estimated at one billion riyals
The General Authority for State Real Estate reclaimed a number of land parcels totaling over 10 million square meters in 2021 that had not been utilized by certain government agencies, with a market value estimated at approximately one billion riyals. The Authority clarified that the reclaimed properties will be reallocated to meet the real estate needs of other government agencies.
The Authority commended the significant and effective cooperation from the government system, which had a profound impact on the successful implementation of the Authority’s strategic initiatives regarding the protection of state-owned real estate and the enhancement of its productive and economic efficiency through innovative solutions, noting that the recovery of land is carried out in accordance with regulations governing the allocation, recovery, and transfer of real estate among government agencies.
Cases in which real estate or part thereof is reclaimed from the entity to which it was allocated:
– If it has been left vacant for more than three years from the date of receipt.
– The entity to which it was allocated no longer requires the property.
– The purpose for which it was intended has ceased.
– The site or part thereof is used for a purpose other than that for which it was designated.
– If the property is deemed unfit for use according to a technical report.
– The authorized entity’s need for the property for another use.
– If the property’s utilization rate does not exceed 50% of its office space.
4 Strategic Goals and 19 Smart Initiatives
The Authority noted that it has adopted 4 strategic objectives, from which 19 smart initiatives have emerged that encompass all of its work and open up broad horizons to fulfill its regulatory and executive roles.
Among these initiatives are: establishing and developing a system for protection against encroachments; inventorying and registering state real estate assets and strengthening the real estate portfolio; improving the efficiency of managing state real estate; providing headquarters for government agencies in partnership with the private sector; improving the efficiency of the operation, use, and compliance regarding state-owned real estate; developing products that generate financial returns; establishing policies, specifications, and standards for state-owned real estate; providing new financial and funding solutions; in addition to improving the efficiency of state real estate management. All these initiatives aim to transform the real estate inventory—particularly the idle portion—into development and economic opportunities, as well as to meet the government’s real estate needs (buildings, land), and supporting the Kingdom’s Vision 2030 programs by allocating land to initiatives such as the Public Investment Fund, housing, services for pilgrims, Quality of Life, Financial Sector Development, the National Industry and Logistics Development Program, and the Fiscal Balance Program).
The Authority noted that supporting government sectors by meeting their real estate needs will help improve the quality of services provided to citizens and residents, as well as reducing the government’s rental portfolio by providing permanent alternatives to leased properties, improving the utilization of operational space, and contributing to a higher quality of life for individuals and families.
