MOMAH seeks public feedback on vacant property fees draft

Ministry of Municipalities and Housing (MOMAH) headquarters

The Ministry of Municipalities and Housing (MOMAH) is seeking public feedback on the draft executive regulations for vacant property fees via the “Istitlaa” platform until April 25, 2026.

The draft establishes a framework for applying fees to unused buildings within cities, aiming to reduce high vacancy rates and encourage property use to support a balanced real estate market.

All vacant properties within zones designated by the ministry will be subject to the fee, with usage determined by official permits and occupancy certificates. In cases of multiple ownership, each owner pays their proportional share.

Owners must disclose the status of their properties, submit required documents when the fee is announced, and update information periodically. The ministry can verify data through inspections or by requesting additional documents.

The fee is calculated based on the property’s “market rental value,” not exceeding 5% of the property value annually, with a specialized technical committee overseeing evaluations according to approved guidelines.

Fee applicability requires the property to be within the designated scope, livable, remain vacant for at least six months during the reference year, and fall below minimum service consumption. Exemptions include the end of vacancy, occupancy barriers, ownership transfer, issuance of an occupancy certificate, or other justified reasons.

Invoices will be issued on set dates, with payment due within six months. Fees for previous years are effective from the invoice date, with payment due within 90 days.

Fee and penalty collection will follow legal procedures, with the option to involve the private sector, and revenues will be directed to support housing projects in coordination with relevant authorities.