50% of land in big cities is vacant

GOOD MOVE: A levy on vacant land is likely to burst the housing bubble.
Updated 17 June 2016
0

50% of land in big cities is vacant

JEDDAH: Social media websites are abuzz with news about the approval of the fees imposition list by the Council of Ministers on "white", or vacant land.
Real estate expert Abdulhamid Al-Omari said that official data shows that white land account for around 50 to 60 percent of the total land in major cities. He said that the proportion of these plots of land that are actually being used does not exceed 10 percent. However, they have monopolized over 93 percent of real estate deals, which have exceeded SR 2 trillion in value for the past six and a half years.
He said that the huge circulation of money over limited spaces of land has led to high prices as increasing numbers of merchants wish to own these lands, and refuse to sell or develop them. This has led to an empty cycle of land and property inflation, which could lead to very high prices, with an apartment costing as much as SR2.4 million, while a villa could cost up to SR10 million within a span of two years.
He pointed out that after approving the fees list, the situation will be altered because owners won't be able to have the land without conditions or restrictions, and will have to pay fees on their land. The bigger the space, the higher the fees, leaving proprietors with two options: to sell or develop the land, which will increase offers, which stand at 10 percent now. He stressed that if offers increase by 20, 30 or 50 percent or more after the implementation of the list, the monopolies will collapse and prices will decrease even further.
Financial expert and economist Mohammad Al-Suweid said that imposing fees on vacant land will have a positive impact on real estate investment, and facilitates citizens' access to suitable accommodation.
Al-Omari advised property seekers to be careful and wait for the storm to pass and for prices to stabilize. He added that the market has been in a period of decline since 2015 and will witness further decreases under the whip of white land fees, reported Al-Watan.


King Salman receives Saudi education officials

King Salman receives officials of theMinistry of Education and Saudi universities at Al-Yamamah Palace in Riyadh on Monday. (SPA)
Updated 11 December 2018
0

King Salman receives Saudi education officials

  • The king stressed the role of education in the development of a country

RIYADH: Top officials of the Ministry of Education and Kingdom’s universities on Monday called on King Salman at Al-Yamamah Palace in Riyadh. 

The king stressed the role of education in the development of a country. Saudi Arabia ranks as the largest market for education services in the region, and it also accounts for a growing number of students enrolled in the kindergarten to grade 12 education system in the six-nation Gulf Cooperation Council. 

Strong government support over the past few years has led to the continuous expansion of the education sector by inviting private players to enter the space.

According to a study conducted by Research and Markets, the higher education industry of the Kingdom inclined at a single digit compound annual growth rate during the period 2012-2017. 

The establishment of new universities due to increased investments in the education sector was the key contributor to the augmented revenues generated by the market players.