Economists said such a decision would have a positive impact on supply and demand, put an end to the illegal acquisition of land by others and end the problem of unknown ownership.
There are many empty plots of land in inhabited areas whose owners are not known.
Economists believe that such a step would prompt owners to either sell their empty plots or invest in them, as they would not want to lose large amounts of money paying the annual fees. They say the annual tax would also act as a stable indicator for deciding land prices.
After studying the issue, the Shoura Council asked the Ministry of Municipal and Rural Affairs to study the possibility of imposing taxes on empty land within inhabited areas to oblige the owners either to properly utilize them or sell them to those who want to develop them.
Realtors hailed the council’s decision and said it would have a positive impact on the real estate market and help end the housing crisis.
Osama Bahri, an owner of a real estate office, did not believe the decision would be implemented soon but said it would force owners either to sell these plots before their prices go down or develop them to help alleviate housing shortages.
"The owners cannot go on paying annual fees on their empty land forever. They would ultimately have to invest or sell them," he said.
Farouk Al-Khateeb, a professor of economics at King Abdulaziz University in Jeddah, said imposing fees on empty land would serve two purposes. First, it would protect these plots from being illegally acquired by others and secondly, it would help fix the prices of land in the Kingdom.
Al-Khateeb also said the purchasing ability of the Saudi citizen was around SR80,000 while the actual price of a plot of land would be above SR200,000.
