RIYADH, Saudi Arabia – The Riyadh Advancement Company is signaling a notable shift in its land holdings, announcing nearly 850,000 square meters of its properties are now subject to white land fees. This significant parcel is spread across three distinct neighborhoods within the Saudi capital.
Vast Riyadh Land Parcels Trigger White Land Fees
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Nearly 850,000 square meters of Riyadh land now faces white land fees, impacting three key neighborhoods.
- Riyadh development Company has declared approximately 850,000 square meters of land subject to white land fees.
- These lands are located in three specific Riyadh neighborhoods: Al-Remal, Al-Deira, and Al-Mulka.
- The fees vary by location, with Al-Remal facing a 2.5% fee and Al-Deira and Al-Mulka facing 10% fees.
- The company will disclose the financial implications later, after excluding real estate fund assets.
This move directly impacts vast swathes of undeveloped land, a key component of Saudi Arabia’s urban planning initiatives. The specific areas designated for these fees are meticulously detailed:
Land Breakdown by Neighborhood
The Riyadh Development Company detailed the land sites subject to these new financial obligations:
- Al-Remal neighborhood: This area accounts for the largest portion, with 828.58 thousand square meters. It falls under the fourth category for fees, carrying a 2.5% charge.
- Al-Deira District: Spanning 18.50 thousand square meters, this district is subject to the first category of fees, meaning a 10% charge applies.
- Al-Mulka neighborhood: This smaller parcel measures 4.86 thousand square meters and is also subject to the first category, incurring a 10% fee.
Did you know? – White land fees are levied on undeveloped land within urban areas. The goal is to encourage development and increase housing supply. This initiative is part of a broader effort to manage land use and promote urban growth.
Financial Impact Awaits Further Announcement
While the scale of the land affected is clear, the precise financial impact remains under wraps. The company indicated that a full disclosure will be made at a later date. This announcement will come after the exclusion of assets held within real estate funds from the company’s accounts,suggesting a complex calculation process is underway.
Reader question: – What impact will these fees have on the local real estate market? Will they encourage more development, or could they perhaps increase property prices? Share your thoughts in the comments.
