{"id":105068,"date":"2026-05-13T22:27:21","date_gmt":"2026-05-13T19:27:21","guid":{"rendered":"https:\/\/amlak.net.sa\/?p=105068"},"modified":"2026-05-14T08:37:26","modified_gmt":"2026-05-14T05:37:26","slug":"%d9%88%d8%b2%d9%8a%d8%b1-%d8%a7%d9%84%d8%a8%d9%84%d8%af%d9%8a%d8%a7%d8%aa-%d9%88%d8%a7%d9%84%d8%a5%d8%b3%d9%83%d8%a7%d9%86-%d9%8a%d9%88%d8%b6%d8%ad-%d8%a2%d9%84%d9%8a%d8%a9-%d9%81%d8%b1%d8%b6-%d8%a7","status":"publish","type":"post","link":"https:\/\/amlak.net.sa\/en\/105068\/","title":{"rendered":"Minister of Municipalities and Housing clarifies mechanism for charging fees on vacant properties after adopting executive regulations"},"content":{"rendered":"

Minister of Municipalities and Housing Majid Al-Hogail confirmed that the decision to impose fees on Vacant units <\/a><\/strong>The new policy comes as part of efforts to regulate the real estate sector and achieve a balance between supply and demand, explaining that the new policy aims to increase the efficiency of utilizing unutilized units and promote market stability.
Speaking at the government press conference on Wednesday, Al-Haqeel explained that the recently approved regulation within the \u201cReal Estate Balance\u201d program granted a specialized ministerial committee the authority to set the controls and criteria for applying the fees, according to detailed studies that take into account the conditions of the real estate market in various regions and cities of the Kingdom.<\/p>\n\n\n\n

He pointed out that the implementation of the fees will not take place immediately, but will be subject to a gradual and studied mechanism linked to specific indicators, including rising rental prices or a shortage of housing supply in some areas, after a year has passed since the monitoring of these indicators.
The Minister of Municipalities and Housing explained that the committee will determine the type of properties that will be covered by the fees, whether they are residential units or offices and shops, in addition to determining the period of vacancy that triggers the imposition of the fees.<\/p>\n\n\n\n

He stressed that the aim of the policy is not to impose penalties on investors or real estate owners, but to stimulate the operation of unutilized units and increase the real estate supply, thus contributing to providing more options for citizens and the commercial sector and stabilizing the market.
He stressed that the Kingdom is working to develop a more flexible and efficient real estate system, capable of dealing with economic changes and market challenges, in order to support the sustainability of growth in the real estate sector.<\/p>\n\n\n\n

Earlier today, the Ministry of Municipalities and Housing announced the approval of Executive Regulations for Annual Fees on Vacant Properties<\/a><\/strong>This is an extension of the directives of His Highness the Crown Prince - may Allah protect him - aimed at achieving balance in the real estate market, a regulatory step that aims to incentivize real estate owners to pump their units into the market.<\/p>\n\n\n\n

Landlord Obligations and Enforcement Standards<\/strong>
The new regulation obliges owners to continuously disclose and update their property data periodically, which enhances market transparency and increases the quality of data available for oversight. The draft has set strict conditions for the property to be subject to the fee, most notably that it is located within the targeted application area, is technically occupiable, and does not achieve the minimum consumption of basic services (such as electricity and water) during the period of vacancy.<\/p>\n\n\n\n

Vacancy controls and evaluation mechanisms<\/strong>
The regulation resolved the controversy over the mechanism of calculating the duration of the vacancy, as a continuous or separate period of 6 months during the reference year. The adoption comes after the Ministry of Municipalities and Housing released a draft of the regulation through the \u201cExplore\u201d platform, which stipulated the formation of specialized technical committees to estimate the fee based on \u201cLike-for-like\u201d<\/strong> According to current market standards, without relying on the purchase price written in the instrument.<\/p>\n\n\n\n

Expected impact on the real estate landscape<\/strong>
It is expected that these fees will lead to a radical shift in the behavior of landlords, as linking the fees to market and rental value will contribute to reducing price inflation and achieving fairness in valuation. Experts also expect that this regulation will complement what the \u201cwhite land\u201d fees started, by turning closed units into available supply, which will contribute to lowering prices, raising the level of competition, and enabling citizens to obtain a variety of housing options at fair prices.<\/p>\n\n\n\n

Highlights of the Executive Regulations for Vacant Property Fees<\/strong>
The Executive Regulations set the annual fee for vacant properties at a percentage of the similar rent, not exceeding 5% of the value of the building.<\/p>\n\n\n\n

Vacant properties are buildings located within the urban area that have been underutilized for a long time without an acceptable justification, affecting the supply in the real estate market.<\/p>\n\n\n\n

The vacancy period applies to occupiable buildings within the applicable geographical zones, once they have been vacant for 6 months during the reference year, whether continuous or intermittent.<\/p>\n\n\n\n

Scope of application Fees within a specific geographical area of the city are determined by a decision of the minister, based on indicators including vacancy rates, real estate prices, housing costs, and supply and demand.<\/p>","protected":false},"excerpt":{"rendered":"

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