Saudi Gazette report
RIYADH — Saudi Minister of Municipal and Rural Affairs and Housing Majid Al-Hogail on Wednesday introduced the geographic zones for white land charges in Riyadh, marking a significant step towards regulating the property market and inspiring balanced city growth, according to directives from Crown Prince Mohammed bin Salman.
Al-Hogail mentioned the brand new part of this system permits landowners and builders to capitalize on alternatives whereas supporting the ministry’s targets of accelerating provide and reaching equilibrium in the actual property sector.
Underneath the brand new framework, annual charges are imposed on undeveloped lands in response to 5 tiers:
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Precedence Zone 1: 10% of land worth
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Precedence Zone 2: 7.5% of land worth
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Precedence Zone 3: 5% of land worth
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Precedence Zone 4: 2.5% of land worth
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Outdoors precedence areas: exempted from charges however counted throughout the proprietor’s complete undeveloped land holdings within the metropolis
The minister had earlier authorized the manager rules for the white land charge program, which stipulate that each one land makes use of are topic to charges beneath the five-tier system.
Solely plots listed in official city boundary maps are eligible, with the minimal qualifying measurement set at 5,000 sq. meters whether or not as a single plot or the cumulative holdings of 1 proprietor inside Riyadh.
A specialised technical committee, comprising licensed appraisers from the Saudi Authority for Accredited Valuers, can be shaped to evaluate land values and set growth timelines. Committee membership phrases are three years, renewable.
The ministry is remitted to evaluate yearly the supply of land and housing models, market exercise, costs, and monopolistic practices in every metropolis. Primarily based on these evaluations, it could resolve to use, droop, or alter the scope of the land charge program to make sure alignment with city growth priorities.
