Latest news with #RuralAffairsandHousing
Arab News
30-04-2025
- Business
- Arab News
Saudi Arabia raises undeveloped land tax to 10%, expands scope to vacant properties
JEDDAH: Saudi Arabia has raised the annual fee on undeveloped land from 2.5 percent to up to 10 percent of property value, as part of Cabinet-approved reforms to address market imbalances. The amendments to the White Land Tax Law expand its scope for the first time to include levies on long-vacant buildings and revised land-size thresholds for taxation. The changes, ratified by the Cabinet on April 29, mark the most significant overhaul of the law since its inception in 2016. They come as part of a broader effort to accelerate development, counter speculation, and address supply-demand imbalances in the Kingdom's real estate sector, which has seen mounting pressure in key cities such as Riyadh. The reforms support broader efforts to curb speculation, boost land utilization, and enhance access to affordable housing in line with Vision 2030. In a post on his official X account, Minister of Municipal, Rural Affairs and Housing Majid Al-Hogail said: 'The amendments included stimulating the use of vacant properties, and amending the targeted areas and the amount of the fee on undeveloped and developed vacant lands within the urban area, by up to 10 percent.' The revised framework sets a minimum land area of 5,000 sq. meters for the application of the fee, covering both individual plots and contiguous holdings in designated urban areas. It also broadens the tax base to include vacant buildings — defined as ready-to-use buildings prepared for occupancy within the urban area that have not been used for a long period without acceptable justification, and whose lack of use or exploitation affects the availability of sufficient supply in the real estate market. These vacant properties will now face an annual levy of up to 5 percent of their estimated rental value, as specified in forthcoming regulations. The updated law introduces clearer criteria, phased implementation, and enhanced enforcement mechanisms, including grievance channels and unified property databases. The Kingdom originally launched the White Land Tax Law to discourage land hoarding and promote more equitable development. According to the Saudi Press Agency, Al-Hogail stated that the revised system is expected to enhance the efficient use of idle land and buildings, align supply with demand, and promote the productive use of real estate assets. It also seeks to encourage the development of undeveloped land and increase the overall availability of real estate, particularly residential properties. The changes come as Saudi authorities intensify efforts to stabilize the housing market in cities like Riyadh, where surging land values and rental rates have strained affordability. A study by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs recently prompted a series of measures, including lifting development restrictions in large swaths of northern Riyadh. The government will issue executive regulations for the amended White Land Tax Law within 90 days of its publication in the official gazette. Regulations governing vacant property taxation are expected within one year, according to SPA.
Argaam
29-01-2025
- Business
- Argaam
View signs MoU with Housing Ministry
View United Real Estate Development Co. signed on Jan. 28, a memorandum of understanding (MoU) with the Ministry of Municipal, Rural Affairs and Housing, represented by the Agency for Housing Supply Stimulus and Real Estate Development. In a statement to Tadawul, View pointed out that the MoU aims to enhance cooperation and improve the efficiency of the real estate development sector, aligning with the strategic objectives of Saudi Vision 2030.
Leaders
28-01-2025
- Business
- Leaders
Asir Region Unveils Tourism Vision at Real Estate Future Forum 2025
The 4th Real Estate Future Forum (RFF) 2025 kicked off In Riyadh on Monday, spotlighting Saudi Arabia's $1 trillion real estate pipeline and Vision 2030 megaprojects. With 500+ speakers from 120 nations, the event highlighted sustainability, tech innovation, and global partnerships. Advancing Tourism Investment in Asir Nawaf bin Hussein Al Zulfah, head of Investment Attraction at the Asir Region Development Authority, emphasized their participation in the 2025 Real Estate Future Forum. He stated, 'Our participation in the 2025 Real Estate Future Forum aims to drive tourism investments in Asir, coinciding with Abha's designation as a host city for the FIFA World Cup 2026 finals—by the grace of God.' He added, 'We have presented major investment projects to potential investors at this forum, which has already yielded positive outcomes, including the signing of multiple strategic agreements.' Real Estate Future Forum Incentives and Opportunities for Investors When asked about incentives Asir offers investors during this event, Al Zulfah highlighted, 'To clarify, our work operates within the regulatory frameworks of the Government Agency Support Center and the Ministry of Municipal, Rural Affairs and Housing, with the Municipality partnering in this exhibition.' He continued, 'We engage directly with investors to negotiate flexible arrangements, whether through equity partnerships, leasing models, or other collaborative agreements tailored to their needs.' Key Investment Sectors in Focus Discussing key investment sectors Asir is highlighting at this forum, Al Zulfah explained, 'We are prioritizing tourism-driven sectors, including hospitality, adventure tourism, cultural tourism, sports, healthcare, education, and other fields aligned with enhancing quality of life and advancing the region's economic and developmental goals.' The fourth edition of the Real Estate Future Forum is scheduled from January 27 to 29, 2025, at the Four Seasons Hotel in Riyadh. Organized under the theme 'Future for Humanity: Shaping Dreams into Reality,' the event gathers representatives from over 120 countries and more than 500 speakers from government and private sectors. Global real estate professionals can use the interactive platform provided by the forum to exchange insights, showcase success stories, and explore innovative practices and cutting-edge technologies they can leverage to foster sustainable growth in the sector.. Short link : Post Views: 96
Argaam
27-01-2025
- Business
- Argaam
Private sector manages 39% of municipal sector, 100% of housing: Al-Hogail
The private sector currently manages 39% of the municipal sector, with plans to increase this share to 70%, said Minister of Municipal, Rural Affairs and Housing Majed Al-Hogail. During a panel discussion at the Real Estate Future Forum, Al-Hogail highlighted that this collaboration significantly enhanced revenues, with municipal sector earnings increasing fourfold over the past three years as a result of private sector involvement. The minister also emphasized that the private sector fully manages the housing sector, overseeing planning, construction, and financing. He noted that one of the key indicators in the sector is the rapid growth in homeownership, driven by both local and international developers. Efforts continue to focus on providing housing units for families most in need. Al-Hogail added that the financial sector is experiencing significant growth due to housing projects within the municipal sector, highlighting that municipal activities contribute 14% to the economy.
