The Saudi real estate market is witnessing a new trend towards regulating the use of land and buildings within urban areas, by applying fees on vacant properties, in a move aimed at addressing one of the most prominent challenges facing the sector, namely the abundance of unused buildings and its impact on the balance of supply and demand in the real estate market.

In an infographic, the Ministry of Municipalities and Housing explained the concept of vacant properties. The Ministry of Municipalities and Housing Ministry of Municipalities and Housing, through an infographic, explained the concept of vacant properties as buildings located within the urban area and unused for long periods, without an acceptable justification, which negatively affects the real estate supply in the market and hinders efforts to achieve balance and development of cities.

According to the regulations, the Ministry of Municipalities and Housing. According to the regulations, the state imposes an annual fee on vacant properties at a rate not exceeding 5% of like-for-like rent, which is an estimated rental allowance value calculated based on multiple criteria such as location, area, type of use, and structural condition, within the same urban area and for a similar period of time.

This fee is applied to all vacant properties within the same urban area and for a similar period of time. <This fee applies to all types of vacant properties, unless exempted by the state, with the possibility of raising the fee rate to 10% with the approval of the Council of Ministers, if there are organizational and economic justifications. This step aims to reduce the phenomenon of keeping properties unutilized, and encourage owners to develop them or offer them for sale or rent, which enhances the efficient use of land and supports the achievement of the goals of Saudi Vision 2030 in improving the quality of life and increasing the residential and commercial supply.

Interested parties can contact the ministry through its website idlelands.momah.gov.sa or through its official account @Lands_sa for more information about the requirements and details of the application of the fees.

The vacant property fee is a stimulating regulatory tool to ensure the effective utilization of real estate assets, contribute to accelerating the pace of urban development, and create a more balanced investment environment in the Kingdom's cities.