White Land Fees... and Stimulating Urban Development
Abdullah Ibrahim Al-Hatlani
The vacant land fee system is a significant reform in the history of the Saudi real estate market and an effective means of stimulating sustainable urban development. As the system continues to be implemented and expanded to include new phases and areas, it will put pressure on landowners to develop or sell their land, leading to a gradual decline in land prices in some cities by unlocking idle land.
The fees will also help regulate the real estate market and achieve a balance between supply and demand, which will help stabilize prices. Furthermore, the fees have helped direct development toward densely populated urban areas, and providing infrastructure services more efficiently and effectively by encouraging owners of undeveloped land to develop or sell it, thereby expanding the real estate supply base. Revenues from these fees are allocated to the development of housing projects and public facilities that serve citizens.
Creating a more equitable and sustainable real estate environment can only be achieved by courageously addressing structural challenges, as reflected in this conscious national approach to regulating the market and stimulating development for the benefit of all.
