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FINANCIAL NEWS
Saudi new estate tax to lower property prices by 40 percent
23 Jun 2016
(MENAFN) The announcement of the 2.5 percent annual tax on unused land by the Saudi government will decrease the property prices by up to 40 percent, said a report.
In detail, the new ‘white land tax’ will also attract more investors to the sector, stabilize the market and see major developments over the next two years.
“The tax would see prices drop between 20-40 percent over the next two years and then stabilize.” chairman of the real estate committee at Makkah Chamber said.
“40 percent of lands in major cities were not being used, which could result in returns of up to USD8 billion if developed,” he also stated.
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