Al-Hogail outlines key amendments to idle land fees regulation

Majid Al-Hogail, Minister of Municipalities and Housing, outlined key amendments to the idle land fees regulation, which was approved by the Cabinet today, April 29.

Al-Hogail confirmed that work is underway to issue the regulation’s executive bylaws within 90 days from the date of its publication in the official gazette.

A separate bylaw addressing vacant properties will be issued within one year of publication.

Key amendments include changes to the fee percentage, land area thresholds, types of land use, implementation phases, and the inclusion of vacant properties.

The new regulation defines vacant properties as ready-to-use buildings within urban boundaries that have been unutilized for extended periods without a valid justification — contributing to an undersupply in the local real estate market.

Under the new amendments, fees will be imposed on vacant properties within approved urban areas, calculated as a percentage of the estimated rental value (annual rent), not exceeding 5% of the property’s value, as determined by the bylaws.

Additionally, the upper limit for the annual fee has been raised to a maximum of 10% of the property's value. The minimum area subject to the fee has also been revised, now applying to land plots or combined land holdings of at least 5,000 square meters, as specified by the regulations.

The implementation of the system will be guided by accurate, unified databases to ensure fairness and transparency. Clear mechanisms for objections and appeals will be provided. The regulation will be applied across all regions of the Kingdom as an effective regulatory tool to promote sustainable urban development, reduce land hoarding, and optimize the use of land and property assets to benefit both citizens and the market.

According to Saudi Press Agency (SPA), Al-Hogail emphasized that the amendments align with the recent directives of Crown Prince Mohammed bin Salman, which are part of broader efforts to balance the local real estate market.

He noted that the amended regulation should help improve the usefulness of unutilized land and buildings, hence bridging the sector’s supply and demand trends and prompting the effective use of the Kingdom’s real estate assets. It will also support the development of idle lands and boost real estate supply, particularly housing.

The minister added that the approval of these amendments marks a significant step toward enhancing the efficiency of the sector in Saudi Arabia, strengthening real estate development, boosting investment attractiveness, and supporting the objectives of the Housing Program—one of the key programs under Saudi Vision 2030.