MOMAH endorses exec regs for vacant property fees

Riyadh city

The Ministry of Municipalities and Housing (MOMAH) endorsed today, May 13, the executive regulation for vacant property fees, which only apply in case of vacancy criteria apply.

The move is an extension of the directives of Crown Prince Mohammed bin Salman, aimed at achieving balance in the real estate market, the ministry said in a statement on X.

It added that the cities and geographical zones covered by the new regulations will be announced later in accordance with the approved criteria.

The ministry also explained that the new regulatory framework aims to improve the efficiency of real estate asset utilization, encourage the operation of vacant properties, increase real estate supply, and enhance balance in the property market.

By law, the annual fee on vacant properties will be calculated as a percentage of the equivalent market rent, provided that it does not exceed 5% of the building’s value.

Vacant properties include buildings located within the urban boundaries that remain unused for an extended period with no legal justification, which in turn affect the availability of sufficient supply in the local real estate market.

The newly-introduced fees will also apply to buildings that remain vacant for six months during the reference year, whether continuously or intermittently.

The geographical scope of fee implementation will be determined by a ministerial decision, based on indicators including vacancy rates, rising property prices, housing costs, and supply-demand analytics.