Saudi Arabia Imposes Vacant Property Fees to Regulate the Real Estate Market

The real estate market in Saudi Arabia is witnessing new regulatory measures, including the implementation of vacant property fees, aimed at improving sector efficiency and encouraging the use of underutilized assets as part of broader efforts to develop the real estate environment and balance supply and demand.

Details of the Decision to Impose Vacant Property Fees in Saudi Arabia

The Ministry of Municipalities and Housing in Saudi Arabia approved the executive regulations related to imposing annual fees on vacant properties, as part of a strategy aimed at regulating the real estate market and encouraging the operation of unused Saudi Real Estate properties for long periods.

According to the new regulations, fees will be imposed on vacant properties after they remain unused for six months, with the annual fee reaching 5% of the building’s value if the property meets the vacant property criteria outlined in the regulations.

The relevant authorities also clarified that the application of vacant property fees will vary from one region to another depending on supply and demand indicators and real estate prices, ensuring greater flexibility in implementing the decision according to the nature of each local market.

This measure aims to increase the supply of residential and commercial units in the market, while also encouraging property owners to invest in or offer their properties for use instead of leaving them vacant.

The decision is expected to support the movement of the Saudi real estate market, improve the efficiency of real estate asset utilization, and enhance sustainability and sector regulation in line with economic development goals.