Saudi Arabia property levy reforms are reshaping the market and driving new development. The government raised fees on undeveloped plots and long-term vacant buildings to as much as 10 percent. These new measures make it expensive for landowners to keep property idle. As a result, developers are now preparing to bring more projects to market.
The rules apply to large plots within designated urban areas. Authorities believe this step will balance supply and demand in major cities. Furthermore, the kingdom wants to moderate land price inflation and improve affordability. These reforms also align with Vision 2030, which focuses on diversification and sustainable growth. More supply should help stabilize prices and encourage broader home ownership.
Saudi Arabia real estate taxation changes come as the kingdom welcomes foreign property buyers. New rules allow non-Saudis to own property in specific zones in Riyadh and Jeddah. Foreign investors can also buy into real estate companies listed on the local exchange. This combination of reforms strengthens capital markets and expands opportunities for international investors.
Moreover, the government aims to increase home ownership among Saudi citizens. The current ownership rate already exceeds earlier goals. Authorities want to push the figure higher through initiatives like Sakani and better access to long-term financing. By linking urban land duties with housing programs, the government expects to reach a 70 percent ownership target.
The number of undeveloped plots covered by the Saudi white land scheme continues to rise. Authorities have now identified thousands of plots across Riyadh, Jeddah, Makkah, and Dammam. This represents a significant increase compared to the early years of the policy. Analysts expect these measures to unlock new development opportunities in key cities.
In addition, property developers are showing renewed interest. Market specialists believe higher levies encourage owners to build or sell instead of holding plots. Many developers are exploring partnerships with global firms to accelerate projects. International players have already entered the market with high-profile residential ventures. These collaborations will bring new opportunities to Saudi Arabia’s real estate sector.
However, demand pressure remains strong, especially in Riyadh. Apartment prices have climbed by over 80 percent since 2019, while villa prices rose by nearly 50 percent. Experts say new supply could ease this trend. Raising taxes on vacant holdings should unlock more development sites and gradually stabilize prices.
Saudi Arabia fiscal land measures are reshaping the future of the housing sector. They encourage owners to act, attract foreign investors, and support citizens’ housing needs. Together, these steps create a more dynamic market while ensuring sustainable growth.
