Saudi Arabia Approves Vacant Property Fee Regulations

Saudi Arabia's Ministry of Municipalities and Housing has approved the executive regulations for vacant property fees, a step aligned with directives from Crown Prince Mohammed bin Salman aimed at regulating the real estate sector and achieving supply-demand equilibrium.

The regulations are designed to encourage property owners to utilize their vacant buildings and increase the supply of residential and commercial units, thereby helping to curtail practices that negatively impact market balance. Vacant properties are defined as buildings that have not been used or occupied for six consecutive or non-consecutive months during the reference year.

The fees apply to buildings located within geographic zones determined by ministerial decisions, based on market indicators such as vacancy rates, price levels, and housing costs. Annual fees do not exceed 5% of the property value and are calculated according to estimated rental value assessment criteria.

The ministry clarified that fee revenues will be directed toward supporting housing projects and contributing to urban development, while property owners will be granted a grace period of up to six months from the invoice issuance date to settle their obligations.