Justice minister, DGA chief discuss partnership to boost digital judicial services    Netanyahu does not rule out further strikes on Hamas leaders    US farmers are being squeezed – and it's testing their deep loyalty to Trump    Romania condemns 'irresponsible' Moscow after Russian drone breaches its airspace    Kirk's assassination is forcing US politicians to make difficult choices about their safety    India players refused handshakes, says Pakistan coach    Final stage of Spanish Vuelta cycling race abandoned after disruption by pro-Palestine protesters    Mané fires Al Nassr past Al Kholood to keep perfect start as Ronaldo honored    Lacazette brace earns NEOM SC first Saudi Pro League win    Adolescence star Owen Cooper makes Emmys history at 15    Saudi liquidity grows 8.4%, reaching SR3.1 trillion in July 2025    Over 434,000 people acquire first aid skills during nationwide health campaign    Saudi Arabia's legislative advancement highlighted at International Conference on Judicial Training    Sudden swerving among 3 major causes of accidents in Riyadh in 2024    Princess Haifa emphasizes pivotal Saudi role in shaping future of tourism    Sahm Capital names Saudi Olympian Fayik Abdi as brand ambassador    SR9000 fine for copyright infringement using AI    King Charles and Prince Harry finally reunite after 19 months apart    Anastacia: Arnold Schwarzenegger made me sing Whatta Man 12 times    Thousands pay their last respects to Giorgio Armani, private funeral on Monday    The key to happiness    Sholay: Bollywood epic roars back to big screen after 50 years with new ending    Ministry launches online booking for slaughterhouses on eve of Eid Al-Adha    Shah Rukh Khan makes Met Gala debut in Sabyasachi    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Property prices in Madinah fall by 20%, realtors say
Published in The Saudi Gazette on 27 - 12 - 2015


Okaz/Saudi Gazette
MADINAH — The Cabinet decision to impose tax on unused urban land has brought down real estate prices outside the central area in Madinah by 20 percent, according to real estate brokers.
Speaking to Okaz/Saudi Gazette, they said white land sales accounted for 71 percent of real estate deals in the city valued at more than SR20 billion during the Hijra year 1436, which ended in mid-October.
"This once again emphasizes the need to impose such a tax to transform white land into residential projects in order to resolve the housing problem and bring down rent prices," said one broker.
He noted the special status of Madinah where many Saudis like to spend their retirement lives. "This has increased real estate prices inside the city due to high demand," he said.
Realtors in Madinah normally would not react quickly to developments that would usually bring down prices in other parts of the Kingdom.
The Council of Ministers decided to impose a 2.5 percent tax on unused urban land last month. The measure will come into effect only after a year. In the interim period, the Housing Ministry will issue bylaws within six months for enforcing the levy.
Abbas Al-Toukhy, president of Al-Toukhy real estate group, said the decision to impose tax on white land had a big impact on real estate prices in Madinah, especially outside the Haram area, ever since the Council of Economic Affairs announced its study on the issue.
"The prices have gone down by more than 20 percent compared to last year," he said. "The fall in prices is very clear outside the Haram area. Owners are afraid of the tax and many of them have offered to sell their plots of land and there are no takers," he explained.
Speaking about prices inside the Haram area, Al-Toukhy said prices have gone up due to big demand. For example, in the area known as Arbaat Adwar the prices have reached SR8,000 per square meter.
"Projects associated with the Prophet Mosque's expansion have contributed to an increase in the real estate prices within the central area of Madinah," he pointed out.
Following the Cabinet decision there was stagnation in selling and buying of land in the region, Al-Toukhy said. "Everybody is now waiting for the executive bylaw, which will determine how the tax would be imposed."
According to Al-Toukhy the land tax would not have a big impact on prices of real estate inside the Haram area. "There is a shortage of residential land in Madinah to accommodate the growing population as many Saudis intend to spend their last years in the holy city. This would make real estate prices inside the Haram area stable," he added.
Ali Awari, secretary-general of the Madinah Chamber of Commerce and Industry, emphasized the significance of the land tax saying it would encourage real estate owners to carry out more housing projects across the Kingdom.
"This will have a big impact on reducing real estate prices and house rents," Awari told Okaz/Saudi Gazette. "White land sales accounted for 71 percent of total land deals in Madinah during 1436H with a total value of SR20 billion. This also indicates that there are lots of white land in the region."
Abdul Rahim Al-Ghazi, marketing manager of Qusur Al-Ghad real estate group, said the market has reacted quickly to the land tax decision, and this was evident ever since the matter was under discussion in the Shoura Council.
"It has reduced prices in residential areas outside Haram, especially in Aziziyah, Shouran, Hamra Al-Assad, Aaqoul and Owaina by more than 20 percent," he pointed out.
Al-Ghazi said the market is awaiting Ministry of Housing's executive bylaw explaining how the tax would be imposed and on which types of land and whether there would be any exemptions. The market will remain stagnant until the executive bylaw is out, he said.
"You may see a lot of offers to sell land without having enough buyers," he added.


Clic here to read the story from its source.