The Ministry of Municipal, Rural Affairs, and Housing has allocated approximately 2.2 billion riyals from revenue from vacant land fees to develop infrastructure and deliver services to more than 80 housing projects, Majid Al-Zahrani, Assistant Undersecretary for Land and Surveying at the Ministry, confirmed that the program has had positive effects in achieving the purpose for which the fees were imposed.
Medina, Mecca, and Jeddah
This came during an informational session organized by the Riyadh Chamber of Commerce the day before yesterday, in which the second phase of the white land fees was reviewed. The session was attended by a number of real estate investors and interested parties and was followed by a large number of stakeholders via television. He noted that Medina, Mecca, and Jeddah have achieved a significant reduction in the gap between supply and demand. He noted that the next phase will see an increase in real estate supply, demonstrating the success of the program’s objectives—which were established to increase the supply of developed land, thereby achieving a balance between supply and demand, providing residential land at affordable prices, and protecting fair competition, and combating monopolistic practices.
Fee Collection Mechanism
Al-Zahrani called on landowners to register on the online portal, explaining that the fee imposition mechanism begins with the owner submitting documents and data, followed by verification of the completeness of the documents, then appraisal of the land and determination of the fee amount. The owner is subsequently notified of the decision to impose the fee, which is estimated at 2.5% of the land’s value, whether it is vacant, designated for residential or commercial use, or located within a specific geographic area designated by the Ministry.
500 Million Square Meters Invoiced
Engineer Abdulhamid Al-Hammad, head of the White Land Fees Program, revealed that the land invoiced under the program totaled 500 million square meters, while the land that has been put to use through development, is currently under development, or has had its ownership transferred totaled 100 million square meters. He explained that the program is aligned with Vision 2030, which aims to stimulate the real estate supply and increase productivity to provide housing at appropriate prices and quality.
114 Days Left to Register
He confirmed that 114 days remain in the statutory registration period for the second phase of the "white land" fees in Riyadh. He noted that failure to register within the deadline will result in a fine of up to 100% of the fee amount.
Three Phases of the Program
It should be noted that the first phase of the fees applies to undeveloped land with an area of 10,000 meters or more, while the second phase covers developed land with an area of 10,000 meters or more, as well as the total area of scattered plots owned by a single owner that collectively exceed 10,000 meters in a single zoning plan. The third phase will impose fees on developed land with an area of 5,000 square meters or more, as well as the total area of developed land owned by a single owner that exceeds 10,000 square meters within a single city.
