Riyadh Landowners Face New White Land Fees as city Pursues Reconstruction
RIYADH – The Ministry of Municipalities and Housing last month delineated geographical zones within Riyadh subject to annual fees on undeveloped “white land,” a move signaling a meaningful push to accelerate construction and address housing needs in the rapidly growing capital. The tiered fee structure, based on land priority within designated areas, aims to incentivize landowners to develop vacant plots or face escalating costs.
This initiative directly impacts landowners holding undeveloped land within Riyadh city limits, perhaps influencing development timelines and property values. The fees, ranging from 2.5% to 10% of land value annually, are designed to discourage land speculation and unlock parcels for residential, commercial, or mixed-use projects, supporting the Kingdom’s Vision 2030 goals for increased homeownership and urban expansion. The Ministry has categorized land into five segments,each wiht a corresponding annual fee.
Here’s a breakdown of the announced fee structure:
Segment 1 (Maximum Priority): A 10% annual fee will be levied on land value.
Segment 2 (High Priority): Landowners will pay an annual fee of 7.5% of the land’s assessed value. Segment 3 (Medium Priority): The annual fee is set at 5% of the land value.
Segment 4 (Low priority): An annual fee of 2.5% of the land value will be applied.* Segment 5 (Outside Priority): Land in this category is exempt from annual fees but is included in the total calculation of white lands owned by the taxpayer within the city.
