White Land Fees: <An anti-monopoly and sustainable market
Dr. Hamoud Al-Faleh
In light of the rapid transformations in the Saudi real estate sector, the new amendments to white land fees and vacant properties constitute a decisive turn in the path of reform after years of holding vast areas within urban zones without exploitation, which contributed to high prices and limited opportunities for ownership.
These amendments are no longer just a matter of confronting monopolies and a sustainable market. <These amendments are no longer just cosmetic updates, but carry a clear message: Land is a resource for development, not monopolization. After being fixed at 2.5% for decades, the fee is flexible up to 10% at discretion, and extended to vacant properties with fees starting from 5% of the annual rental value.
The amendments unify the phases of the amendments, which have contributed to rising prices and limited opportunities for ownership. The amendments unify the previous stages into a more explicit and clear path, targeting lands over 5,000 square meters within the urban area, while giving their owners a 90-day grace period before applying the fees, to achieve a balance between firmness and flexibility.
Economically, the amendments are expected to be flexible. Economically, these measures are expected to contribute to increasing the housing supply 15-20% in the coming years, which will be reflected in stabilizing prices, bringing the dream of ownership closer, and directing investments towards productive projects instead of useless speculation.
Regulatory Executive Regulations were issued to clarify the calculation mechanisms, exemptions and notification methods, while guaranteeing the right to appeal within 60 days, within a framework that establishes transparency and justice.
With every meter of land freed from inertia, the Kingdom is taking confident steps towards more vibrant cities, more mature markets, and a more diversified economy.
In conclusion, these amendments represent a significant step forward for the Kingdom of Saudi Arabia. In conclusion, this moment represents a fundamental shift in economic philosophy, moving real estate from being a passive savings tool to a dynamic engine of development. This bold vision aims not only to build a fairer and more efficient market, but to transform it into a vital component of an integrated economic cycle that meets the ambitions of Vision 2030, towards a more attractive, transparent and sustainable future for all.
In conclusion, this moment represents a fundamental shift in economic philosophy.
