Survey: Abdullah Al-Saleh: The practical steps taken to implement the Vacant Land Fee System, one of the government’s initiatives, have received widespread attention and a strong response from landowners and those interested in the real estate sector, especially after the issuance of the system’s executive regulations and the determination of the geographic zones that define the fee based on the location and area of the land.
These fees aim to incentivize landowners to develop their land or bring it to market, thereby increasing the supply of land and residential units and, consequently, achieving a balance between supply and demand.
Sultan Hamad: Changes in Market Behavior and Real Estate Investment
Sultan Hamad, a real estate broker, said in an exclusive interview with the newspaper «Amlak Al-Aqaria» that undeveloped land will disappear and become a thing of the past over the next four years. He emphasized that the direction of real estate investment will change, noting that in the past, investment was based on hoarding and remained safe for years without risk, but today, with the imposition of annual fees, costs have risen and the risks have become clearer.
Regarding the extent to which real estate index prices will be affected after the liquidation of land in cities and provinces, Sultan stated that it is difficult to determine the impact of real estate fees, but market behaviors will certainly change, driving development and construction, There are previous programs launched by the Ministry of Municipalities and Housing, such as the Real Estate Incentive Program, which aims to stimulate real estate supply and will play an important role in supporting this trend, as well as raising awareness of the importance of real estate development, which will help address new challenges.
Sultan emphasized that the objectives of implementing the vacant land fees are clear, and there is one solution on the horizon to overcome the challenge and avoid financial risks: development, construction, a focus on innovation, improving infrastructure, and meeting residential and commercial demand.
Regarding the most successful plans for converting white land into income-generating residential and commercial projects, Sultan Hamad noted that it is difficult to offer an opinion so easily, but the opportunities for development and construction are promising, and solutions are available through partnerships, alliances, and investments. There are systems in place to regulate this sector among companies, which serve as solutions to many challenges, and there are existing programs that support this approach, that promote innovation and efficiently meet needs.
Yusuf Al-DosarY: White Lands… Alliances, Not Bubbles
For his part, Youssef Hamad Al-Dosari said: «White land fees are not merely a tool for imposing financial charges on undeveloped land, but rather a key to unlocking the potential of the real estate market and transforming raw assets into high-quality, income-generating projects. These fees encourage investors and developers to form strategic partnerships and adopt innovative solutions in financing and development, which helps boost supply and balance prices.»
Al-Dosari explained that the fees steer investment toward genuine development away from speculation and monopolies, putting the real estate sector on a more sustainable and efficient path and making the market a more attractive environment for local and foreign investors, and giving cities the opportunity to better develop their infrastructure, thereby creating new jobs and improving quality of life.
