Idle Land Program Phase II Kick-off
Phase II of Idle Lands Program has been launched in 17 new cities by the Ministry of Housing
What is an Idle Land?
Idle lands are vacant or undeveloped plots designated for residential or commercial use and situated within the boundaries of a city as defined by the Saudi Shoura Council back in May 2013 within their regulation that enacted Idle Land Program that is applicable to all urban areas across the country.
What is Idle Land Program?
Idle Land Program charges an annual fee for non-governmental idle lands with sole or Joint ownership with a rate of 2.5% of the land’s actual market value. The Ministry of Housing will use the fee income on housing projects and infrastructure to supply housing solutions and products.
Idle Lands Program Objectives
- Increasing modern estate supply achieves the balance between supply and demand.
- Providing residential lots with affordable prices
- Guaranteeing fair competition
- Controlling monopoly practices
What is new about the Idle Lands Program?
In phase II, developed lands owned by one proprietor in an approved housing scheme exceeding 10,000 square meters in 17 additional cities, including 5 cities before the end of 2020 will also be liable to pay the fee.
The implementation of this program will start in five cities namely; Medina, Abha, Khamis Mushayt, Taif, and Jizan
- Medina
- Abha
- Khamis Mushayt
- Taif
- Jizan
ILP phase II aims at lands belonging to a single owner in an approved scheme, with a total area of more than 10 thousand square meters.
The total of the lands subject to fees in the cities of Jeddah, Riyadh, Dammam, and Makkah has reached 411 million square meters, and the total payment issued by the program since the beginning of its implementation has reached about 5,500 payment orders.
The total of the lands subject to fees in the cities of Jeddah, Riyadh, Dammam, and Makkah has reached 411 million square meters, and the total payment issued by the program since the beginning of its implementation has reached about 5,500 payment orders.
Conclusions
Compliance
As a result, landlords subject to Idle Lands Programs are highly recommended to commence developing their idle lands as soon as possible. Otherwise, they are faced with ever-stricter legal requirements and increasing costs of compliance to hold ownership of idle lands.
Appeals
Once fined, a landlord may appeal in writing to a committee formed by a decision of the Minister of Housing, within 60 days from the date he was notified of the fine decision.
Penalties and fines
He shall be punished with an additional fine not exceeding the amount of the fee owed on his land, and this shall not prejudice his obligation to pay the due fee.