Ministry of Municipalities and Housing issues implementing rules to boost housing availability
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Saudi Arabia's Ministry of Municipalities and Housing has approved the implementing regulations for vacant property fees. The move is part of government efforts to improve effective use of real estate assets and enhance housing availability.
The system aims to encourage property owners to rent or sell vacant properties and reduce land hoarding practices.
Saudi Arabia approved a regulatory framework imposing fees on vacant properties at a rate not exceeding 5% of the property value annually, to incentivize owners to utilize them and promote balance between supply and demand in the real estate market.
If you are a vacant property owner in Saudi Arabia, you will bear annual fees reaching up to 5% of the property value starting from the implementation of the framework in designated areas, making renting or selling it a more financially attractive option. Tenants and buyers could benefit from a larger supply of residential and commercial units, putting downward pressure on prices and rents.
Mehmet Yılmaz