RIYADH — The Ministry of Municipalities and Housing has approved the executive regulations for vacant property fees as part of efforts to improve the efficient use of real estate assets and strengthen balance in the property market.
The move comes in line with directives by Crown Prince Mohammed bin Salman aimed at regulating the real estate sector and improving the balance between supply and demand.
The ministry said the regulations are designed to encourage the utilization of vacant buildings and increase the supply of residential and commercial units, helping curb practices that negatively affect market balance.
Under the regulations, fees will apply to vacant buildings located within geographic zones announced by ministerial decision, based on market indicators including vacancy rates, supply and demand levels, prices, and housing costs.
The regulations define a vacant property as a building that has not been used or occupied for six consecutive or non-consecutive months during the reference year.
Property owners will be required to pay fees according to their ownership share in cases involving multiple owners.
According to the regulations, the fee value will be assessed based on estimated rental value standards using approved valuation criteria.
The annual fee will not exceed 5% of the property’s value, taking into account average market and rental values for comparable properties.
The ministry said the regulations also consider circumstances where occupancy is not possible due to reasons beyond the owner’s control.
The framework further outlines procedures related to invoicing and appeals, while granting owners a payment period of up to six months from the invoice issuance date.
The ministry added that revenue generated from the fees will be allocated to support housing projects, contributing to urban development and improving the efficiency of land and real estate asset utilization.
Source: Saudi Gazette