Real estate specialists and experts have confirmed that the commencement of issuing vacant land tax invoices in Riyadh represents a pivotal turning point in the Saudi real estate market. They indicated that this step reflects the seriousness of the relevant authorities in implementing the system as an effective regulatory and developmental tool. These measures aim to recalibrate market behavior, achieve a fair balance between supply and demand, and end a long era of vast areas remaining undeveloped.
Historical context and development goals
This move comes within a strategic framework initiated by the Kingdom since the implementation of the vacant land tax system in 2015, which primarily aims to combat land speculation within urban areas. These taxes are a cornerstone of the government's solutions to increase the supply of real estate and enable citizens to own homes, in line with the goals of Vision 2030 , which seeks to raise the rate of homeownership to 70% by 2030. The program has undergone several implementation phases to ensure a gradual impact and avoid sudden price shocks, culminating in the current phase, which is witnessing significant expansion in both its geographical scope and scale.
Direct impact phase: 60,000 invoices
With the announcement of the issuance of over 60,000 invoices for vacant land fees in Riyadh starting January 1, 2026, the program moves from the theoretical regulatory framework to a stage of direct and tangible impact. This significant step aims to incentivize owners of undeveloped land within densely populated urban areas to develop it, thereby addressing supply imbalances and enhancing market efficiency to keep pace with the rapid population and economic growth witnessed by the capital, Riyadh, as a regional and global investment destination.
Regulating the market and combating monopolies
In this context, real estate developer Saleh Fares bin Hussein explained to Okaz newspaper that implementing the fees is the most effective tool for resetting the market. He pointed out that the results will become apparent through the activation of stagnant land, as owners will find themselves facing two options: either development and productive investment, or selling to inject more land and housing units into the market. Bin Hussein added, "This mechanism will curb speculation that previously drove up prices without any real justification, which will gradually bring prices back to realistic levels that reflect the true cost of housing.".
Price stability and infrastructure support
For his part, real estate expert Awad Al-Asmari described the move as "encouraging," emphasizing that the strict enforcement of the fees will curb monopolies and increase supply in a balanced manner, thus supporting price stability and expanding homeownership opportunities. He pointed out that the revenues from these fees are not wasted but are reinvested in infrastructure and housing projects, creating a comprehensive real estate development cycle that serves the national economy and society.
A pivotal stage and economic decisions
Real estate expert Abdullah Al-Mousa believes that issuing this volume of invoices represents a pivotal stage, shifting the market from regulation to actual impact. He noted that the legally mandated grace period for payment or development gives landowners an opportunity to restructure their assets, anticipating an increase in the supply of developable land and a decline in the phenomenon of unproductive "white land," thus linking land value to its genuine development potential.
Enhancing transparency and efficiency
Real estate expert Reem Al-Omari concurred with the previous opinions, emphasizing that the decision addresses a chronic challenge: land hoarding within cities. She explained that the goal is not financial gain, but rather to regulate market behavior and stimulate development, particularly given Riyadh's significant urban expansion. She concluded that clear billing mechanisms enhance trust and transparency, establishing a well-regulated real estate market that supports long-term sustainable urban development.
