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Saudi Arabia has developed up to 5 million square meters (sqm) of land in 18 months after implementing the white land tax system across the Kingdom, housing sources with knowledge of the matter told Argaam.
“The new tax system has encouraged land owners to develop taxable plots of land spreading on 5 million sqm in Riyadh, Jeddah and Dammam. This will lead to construction of nearly 8,000 residential units on an area of 300 sqm each,” the sources said.
A total of 40,000 citizens will benefit from these units, which could be increased for residential purposes.
It is difficult to measure the impact of the new levy on white land, as it needs more time to materialize, particularly as more than 64 percent of land spread on over 1 million sqm.
The sources added that ownership of over 2.8 million sqm of land was transferred to new owners under the new program.
Meanwhile, several land owners have partnered with the housing ministry to build residential projects under Sakani Program 2017.
Developers Services Center (ETMAM) received 30 applications to develop plots of land on over 40 million sqm in the Saudi capital, Jeddah, Makkah and Dammam.
Saudi Arabia introduced a tax on undeveloped land in June 2016, aimed at tackling land hoarding and restoring balance to the property market, Argaam reported.
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