Saudi Arabia Implements Land Tax Zones in Riyadh to Balance Real Estate Market
New five-tier system aims to regulate property market and encourage balanced urban growth.
The Saudi Minister of Municipal and Rural Affairs and Housing, Majid Al-Hogail, has announced the establishment of specific zones for white land fees in Riyadh.
This move is part of a larger effort to control the real estate sector and promote sustainable urban development, under directives from Crown Prince Mohammed bin Salman.The new program divides undeveloped lands within Riyadh into five tiers based on their value: Priority Zone 1 applies a 10% fee, Zone 2 a 7.5%, Zone 3 a 5%, Zone 4 a 2.5%, while lands outside designated priority areas are exempt from fees but remain part of the owner's total undeveloped holdings in the city.A specialized technical committee will be formed to assess land values and set development timelines for these plots, which must be at least 5,000 square meters according to official urban boundary maps.
Committee members include licensed appraisers from the Saudi Authority for Accredited Valuers with terms of three years' duration.The Ministry of Municipal and Rural Affairs and Housing will annually review market conditions including land availability, housing units, activity levels, prices, and monopolistic practices to adjust or modify the land fee program accordingly.