Latest news with #WhiteLandTax
CairoScene
7 days ago
- Business
- CairoScene
Saudi Arabia Scales Up Housing Efforts in Riyadh to Meet Annual Demand
The Ministry of Housing is boosting development incentives and regulation as Riyadh targets 130,000 new units annually. The Saudi government is intensifying its efforts to meet Riyadh's rising housing demand, with plans to deliver up to 130,000 residential units annually, according to Minister of Municipal and Rural Affairs and Housing Majid Al-Hogail. The city currently meets only 40% to 50% of that demand, prompting a multi-pronged government response to stimulate construction and attract both local and international real estate developers. To increase affordability, the National Housing Company has been tasked with delivering 60,000 housing units in Riyadh, many of which are priced below SAR 450,000 before subsidies, targeting middle-income Saudi families. The ministry is also working to regulate the housing market more effectively, introducing legislation to formalise landlord-tenant relations and revising the White Land Tax to include an annual levy on long-vacant properties without valid use. These policies are part of a broader strategy to close the supply gap, make housing more accessible, and ensure efficient land use as Riyadh's population continues to grow.
Gulf News
02-05-2025
- Business
- Gulf News
Saudi Arabia hikes White Land Tax to 10% in major real estate reform
Dubai: Saudi Arabia has approved a major overhaul of its real estate taxation policy, raising the White Land Tax from 2.5 percent to 10 percent annually on undeveloped land and introducing, for the first time, a separate levy on vacant properties that remain unused without justification. The changes, approved during a Cabinet meeting, aim to stimulate land development and increase the availability of housing as the Kingdom grapples with a surge in real estate prices, particularly in urban centres like Riyadh. The new legislation also broadens the tax base. While the original White Land Tax was restricted to residential and commercial plots, the updated framework applies to any undeveloped land deemed suitable for construction. Additionally, tax application stages have been unified, and holdings totalling 5,000 square metres or more, whether individual or combined, within designated urban zones will now be subject to the annual levy. In a press conference, Minister of Municipal and Rural Affairs and Housing Majed Al Hogail said the reforms are part of ongoing efforts to raise Saudi homeownership to 66 percent by the end of 2024. He also announced new housing initiatives in partnership with private developers, with prices ranging from 250,000 to 1.2 million Saudi riyals. The government will issue detailed regulations for the revised White Land Tax within 90 days. Guidelines for the newly introduced vacant property tax are expected to be released within a year. Al Hogail highlighted the sharp increase in property prices in Riyadh and said Crown Prince Mohammed bin Salman had issued 'clear and firm directives' to bring real estate values in line with economic growth, including industrial, agricultural, commercial, and housing development targets.
Asharq Al-Awsat
01-05-2025
- Business
- Asharq Al-Awsat
Saudi Arabia Pushes Owners of White Land to Revive Properties, Boost Supply
Real estate experts have described the Saudi Cabinet's decision to amend the White Land Tax system as a significant shift in balancing the supply and demand of the property market. The move is expected to influence investor and landowner behavior, encouraging them to develop their properties and increase the availability of residential units, thereby revitalizing real estate development projects. It will also support government efforts to accelerate urban development and offer diverse housing solutions. The experts predict that the effects of this amendment will begin to be felt in the real estate market by the third quarter of 2025, with the most significant impact expected in the first half of 2026, as a higher number of properties fall under the tax. On Tuesday, the Saudi Cabinet approved the amendment to the White Land Tax system, following directives from Crown Prince Mohammed bin Salman in March to take urgent action within 60 days to address the white land crisis. The goal is to increase land supply, curb price inflation, balance supply and demand, and provide affordable residential land. The recent amendments to Saudi Arabia's White Land Tax system introduce three phased implementation stages. The first phase targets undeveloped land measuring 10,000 square meters or more, located within a designated area set by the Ministry. The second phase includes developed land of the same size, as well as developed land owned by a single entity within a single plot. The third phase addresses developed land of at least 5,000 square meters, along with a total of 10,000 square meters or more of developed land owned by a single entity within a city, within the designated area. The changes also allow for multiple phases to be applied within a single city. The Ministry will periodically review the situation in each city to determine whether to impose, suspend, or adjust the tax phases, allowing cities to bypass a stage and move to the next when necessary. Currently, the White Land Tax is being implemented in Riyadh, Jeddah, Dammam, and Makkah as part of its first phase, with a total of approximately 5,500 payment orders covering over 411 million square meters of land. The program recently expanded to include several other cities, including Madinah, Asir, Jazan, Taif, and Tabuk. Real Estate Development Commenting on the decision, real estate consultant and expert Al-Aboudi Bin Abdullah told Asharq Al-Awsat that the move marks a significant shift in balancing supply and demand within the real estate market. He highlighted that the system's transition from fixed, low-impact fees (set at 2.5%) to a more dynamic, incentivizing tool could see fees rise up to 10%, depending on development progress and land use. The inclusion of vacant properties under the tax and the consolidation of tax stages will help address the issue of land hoarding within cities, while also expanding the range of land that can be developed within urban boundaries. Bin Abdullah believes the amendments will address several challenges, including land hoarding and urban stagnation caused by undeveloped plots held for years. Additionally, the new system aims to reduce the unjustified rise in land prices, curb urban distortions due to vacant plots in fully developed areas, and accelerate both residential and commercial development projects by offering better incentives for land activation. The changes are expected to increase the supply of land and developed projects in the coming periods, gradually lowering the prices of some white land, particularly in major cities. This will encourage developers to focus on actual construction rather than holding land passively, while also supporting the government's efforts to speed up urban development and provide a broader range of housing options. Bin Abdullah predicts that the initial effects of these changes will be felt by the third quarter of 2025, especially once the 90-day registration deadline for white land passes and a year has passed since vacant properties were first registered. However, the most significant impact on land prices and availability will likely become evident in the first half of 2026, as more properties fall under the tax's scope. Investor Behavior Shift Meanwhile, Khaled Almobid, CEO of Menassat Real Estate, told Asharq Al-Awsat that the current rise in property prices is detrimental to developers, end-users, and the economy, especially in the long term. He views the amendments to the White Land Tax as a positive step for the real estate market, coming at a timely moment to tackle the sector's challenges. Almobid emphasized that the primary objective of the changes is to shift investor behavior. The amendments are designed to encourage investors to move away from using white land as a store of wealth and instead focus on developing these properties, thereby increasing the supply of residential units in the market. He added that the changes will revitalize development projects, creating jobs across around 150 sectors that work in parallel with the real estate industry, benefiting the overall economic system in cities covered by the White Land Tax. Almobid also pointed out that the inclusion of vacant properties under the tax is a crucial development. This measure creates an incentive for property owners and developers to retain tenants, thus preventing vacancies and avoiding further tax burdens. The move is expected to reduce the previously common practice of raising rents without considering tenants' financial capabilities.
Gulf Business
02-04-2025
- Business
- Gulf Business
Major real estate reform: Will Saudi Arabia implement a rent cap?
Saudi Arabia is considering implementing caps on the rents of both residential and commercial properties. Read- This initiative is part of an effort led by Crown Prince and Prime Minister Mohammed bin Salman to rebalance the real estate market in Riyadh, Al Hammad emphasized while speaking to Al Arabiya. 'The Crown Prince's directives focus on increasing supply by lifting development restrictions in the northern parts of the capital, releasing new plots, regulating lease agreements, and maintaining regular market oversight,' Al Hammad said. The initiative also includes the finalisation of the new White Land Tax law, which aims to boost housing supply and curb the rise in property and rental prices. Saudi authorities have also lifted the ban on transactions related to sales, purchases, subdivisions, and permits for 81 million square meters of land in northern Riyadh. This move is designed to ease supply constraints and encourage new residential development. Increase in provision of residential plots The Royal Commission for Riyadh City has also been tasked with providing between 10,000 and 40,000 planned and developed residential plots annually over the next five years, depending on demand. Prices of the plots The prices of these plots are capped at SR1,500 per square meter for eligible Saudi citizens, including married individuals and those over the age of 25, with specific conditions prohibiting resale or transfer for 10 years unless for financing construction. Other reforms to be introduced include new regulations to govern landlord-tenant relations and ensure fair terms for both parties. REGA and the Royal Commission will also be responsible for monitoring property prices and submitting regular reports to the concerned authorities.
Zawya
02-04-2025
- Business
- Zawya
Saudi Arabia considers rent cap as part of major real estate reforms
RIYADH — Saudi Arabia is studying the implementation of a cap on residential and commercial rent increases to tackle soaring prices, the CEO of The Real Estate General Authority (REGA), Abdullah Al-Hammad, confirmed on Tuesday. Speaking to Al Arabiya, Al-Hammad said the proposal is part of a broader effort led by Crown Prince and Prime Minister Mohammed bin Salman to rebalance the real estate market in Riyadh. The initiative includes five key directives, notably the finalization of a new White Land Tax law aimed at boosting housing supply and curbing the rise in property and rental prices. 'The Crown Prince's directives focus on increasing supply by lifting development restrictions on the northern parts of the capital, releasing new plots, regulating lease agreements, and maintaining regular market oversight,' Al-Hammad said. Authorities recently approved lifting the ban on transactions — such as sales, purchases, subdivisions, and permits — for 81 million square meters of land in northern Riyadh. The move is designed to ease supply constraints and encourage new residential development. As part of these efforts, the Royal Commission for Riyadh City has been tasked with providing between 10,000 and 40,000 planned and developed residential plots per year over the next five years, based on demand. These plots will be offered at prices not exceeding SR1,500 per square meter to eligible Saudi citizens, including married individuals or those over the age of 25, with specific conditions prohibiting resale or transfer for 10 years unless for financing construction. Other reforms include new regulations to govern landlord-tenant relations and ensure fair terms for both parties. REGA and the Royal Commission will also be responsible for monitoring property prices and submitting regular reports. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
