First Avenue for Real Estate Development Company has launched a new initiative for landowners in Riyadh to transform their idle lands into income-generating assets.
Under the Tanmia programme, the company will set up development partnerships with landowners to convert undeveloped land into integrated, high-impact projects that will generate attractive yields.
The programme aims to increase the supply of residential and commercial properties in the Saudi capital city, the company said in a statement to the Saudi stock exchange.
Under the initiative, the developer plans to establish joint ventures, set up investment funds, strike direct development agreements, and offer flexible options, including purchase, lease, or asset swaps.
The initiative will also help mitigate the risks associated with White Land fees by initiating land development procedures.
In May, Saudi Arabia approved amendments to its White Land Tax Law, raising the annual levy on undeveloped land from 2.5 percent to 10 percent of its value and introducing an annual tax on long-vacant properties without justified use.
Previously limited to residential and commercial land, the scope has expanded to include any undeveloped land suitable for development.
The law aims to raise Saudi homeownership to 66 percent this year, Minister of Municipal and Rural Affairs and Housing Majed Al-Hogail has said.
(Editing by Anoop Menon) ([email protected])
Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa.