Riyadh city
The Ministry of Municipalities and Housing (MOMAH) announced the endorsement of the executive regulation for vacant property fees, describing it as an organizational instrument to be implemented in the event that vacancy criteria apply.
The move comes as an extension of the directives of Crown Prince Mohammed bin Salman, aimed at achieving balance in the real estate market, the ministry said in a statement on the X platform.
It added that the cities and geographical zones covered by the new regulations will be announced later in accordance with the approved criteria.
The ministry also explained that the regulations aim to improve the efficiency of real estate asset utilization, encourage the operation of vacant properties, increase real estate supply, and enhance balance in the property market.
According to the regulations, the annual fee rate on vacant properties will be determined as a percentage of the equivalent market rent, provided that it does not exceed 5% of the building’s value.
Vacant properties include buildings located within urban boundaries that remain unused for an extended period without acceptable justification, in a manner that affects the availability of sufficient supply in the real estate market.
The regulations also stipulate that fees will apply to buildings if they remain vacant for six months during the reference year, whether continuously or intermittently.
The geographical scope of fee implementation will be determined by a ministerial decision, based on indicators including vacancy rates, rising property prices, housing costs, and market supply and demand.
Riyadh city
The Ministry of Municipalities and Housing (MOMAH) announced the endorsement of the executive regulation for vacant property fees, describing it as an organizational instrument to be implemented in the event that vacancy criteria apply.
The move comes as an extension of the directives of Crown Prince Mohammed bin Salman, aimed at achieving balance in the real estate market, the ministry said in a statement on the X platform.
It added that the cities and geographical zones covered by the new regulations will be announced later in accordance with the approved criteria.
The ministry also explained that the regulations aim to improve the efficiency of real estate asset utilization, encourage the operation of vacant properties, increase real estate supply, and enhance balance in the property market.
According to the regulations, the annual fee rate on vacant properties will be determined as a percentage of the equivalent market rent, provided that it does not exceed 5% of the building’s value.
Vacant properties include buildings located within urban boundaries that remain unused for an extended period without acceptable justification, in a manner that affects the availability of sufficient supply in the real estate market.
The regulations also stipulate that fees will apply to buildings if they remain vacant for six months during the reference year, whether continuously or intermittently.
The geographical scope of fee implementation will be determined by a ministerial decision, based on indicators including vacancy rates, rising property prices, housing costs, and market supply and demand.
