The Cabinet approved substantial amendments to the White Land Fees System, following the directive of His Royal Highness Crown Prince Mohammed bin Salman – may God protect him – dated 29/03/2025, in a step that reflects the great concern for addressing housing challenges and stimulating sustainable urban development in the Kingdom’s cities
The amendments included raising the maximum annual fee imposed on undeveloped land from 2.5% to a rate of up to 10% of the land value, depending on the use and level of development, with the aim of accelerating the utilization of land and achieving balance in the real estate market.
The minimum land area subject to the system has also been reduced to include any land or group of land measuring 5,000 square meters or more within a single city, compared to the previous limit of 10,000 square meters, thus expanding the system's scope
The amendments included expanding the scope of the fees to include all vacant land suitable for urban development within the urban area, not just residential land, in order to accelerate development and promote the effective use of land
For the first time, the amendments stipulated the imposition of annual fees on developed properties that have not been utilized for long periods without legal justification, in a move aimed at reducing the freezing of real estate assets within cities and increasing the supply of housing units
This amendment comes as part of the objectives of Saudi Vision 2030 and the housing program, and is expected to have a direct impact on increasing the supply of developed land, reducing ownership costs, and achieving a balance between supply and demand in the real estate market
The decision reflects the wise leadership's direction towards integrated economic and legislative solutions to regulate the market and fulfill citizens' aspirations to obtain affordable housing within a developed urban environment
