Development of 75 million square meters
The program explained that the developed areas were distributed among about 75 million square meters fully developed, while about 48 million square meters are in various stages of development, while about 39 million square meters were traded in the real estate market, reflecting the activation of the buying and selling movement and motivating owners to invest unused assets.With regard to the projects that have been developed, the program explained that the areas that have been developed are distributed among about 75 million square meters that have been fully developed, while about 48 million square meters are in various stages of development. <Regarding the residential projects benefiting from the fee revenues, the capital Riyadh recorded the largest share with 27 projects, followed by the Asir region with 17 projects, then the Eastern Province with 16 projects, while the Makkah region came fourth with 14 projects. Other regions, including Tabuk, Medina, Jazan, Al Baha, Al Qassim, Northern Borders, Hail and Najran, also benefited, indicating the comprehensive impact of the system and the distribution of housing investments to different regions of the Kingdom.
This movement comes at a time when the number of projects in the Kingdom is increasing. This movement coincides with the issuance of new amendments to the White Land Fees System, which was published in the Official Gazette after Cabinet approval, including changing the name of the system to “White Land and Vacant Properties Fees System”, to expand the circle of application and raise the efficiency of using real estate assets.
Additional amendments
The White Land Fees Law Amendments included imposing an annual fee not exceeding 10% of the value of the land, according to controls determined by executive regulations, on white lands owned by natural or legal persons, with the exception of state real estate. The amendments also granted the Minister of Municipal and Rural Affairs and Housing the authority to determine the scope of application and the areas of land covered by the fees, provided that the area is not less than 5000 square meters, whether for a single land or a group of adjacent lands owned by the same person.
<The amendments introduced a new clause to impose annual fees on vacant properties at a percentage of the “like-for-like rent”, not exceeding 5% of the property's value, while granting the Council of Ministers the authority to raise the percentage to 10% based on a proposal from the competent ministerial committee. State-owned properties are exempt from this. These amendments are seen as a strategic step aimed at addressing the phenomenon of monopolizing land and unutilized real estate, enhancing real estate supply, especially in major cities, in line with the objectives of Saudi Vision 2030 in the residential sector, achieving balance between supply and demand, contributing to the stability of land and housing unit prices, and improving the quality of life for citizens.
These amendments are seen as a strategic step aimed at addressing the phenomenon of monopolizing land and unutilized real estate, and enhancing real estate supply, especially in major cities.
