White Land Fees System: What do “geographic bands” mean in Riyadh?

The White Land Fees System is a regulatory tool that applies graded annual fees to undeveloped plots within the city’s planned areas. Riyadh is segmented into geographic bands; each band has a specific fee rate (as a percentage of the plot’s market value). The closer a location is to high-demand, well-serviced urban fabric, the higher the band (and fee)—which nudges owners to develop instead of land-banking, and helps balance housing supply and demand.


White Land Fees System — Summary table of bands & rates (Riyadh)

Band Annual Fee Rate Planning Purpose Examples
1 10% Accelerate development in the highest-demand urban areas Al Malqa, Hittin, Al Olaya, Al Sahafa, Al Yasmin, Al Taawun, Al Aqiq, Al Mohammedia
2 7.5% Activate priority development corridors and link urban clusters Longitudinal priority corridors on major eastern axes
3 5% Improve availability in lower-demand urban pockets Interior areas within the urban boundary
4 2.5% Encourage balanced expansion on the urban periphery Outlying areas within the broader urban boundary

To pinpoint your exact band and parcel boundary, use the official interactive map: momrah.gov.sa (Ministry of Municipal, Rural Affairs & Housing).


White Land Fees System — Band-by-band details

Band 1 — up to 10%

  • Rate: 10% of the land’s market value (annually).
  • Profile: High-demand urban neighborhoods with strong land values and active development.
  • Example neighborhoods: Al Malqa, Hittin, Al Olaya, Al Sahafa, Al Yasmin, Al Taawun, Al Aqiq, Al Mohammedia.
  • Why it matters: A stronger price signal to build now rather than hold prime, idle plots.

Band 2 — up to 7.5%

  • Rate: 7.5% of market value.
  • Profile: Priority corridors along major axes (notably toward the east).
  • Why it matters: Encourages gradual infill, connects urban clusters, and relieves pressure on the core.

Band 3 — up to 5%

  • Rate: 5% of market value.
  • Profile: Lower-demand pockets within the urban boundary.
  • Why it matters: Improves land availability and opens mid-density housing options and supporting services.

Band 4 — up to 2.5%

  • Rate: 2.5% of market value.
  • Profile: Peripheral areas still inside the broader urban boundary.
  • Why it matters: Steers balanced outward growth aligned with infrastructure readiness.

Note: In certain cases, open areas may be designated with no fees to direct growth where it’s most needed. Boundaries are periodically reviewed—always verify on momrah.gov.sa.


White Land Fees System — Why was Riyadh divided into bands?

  • Target urban bottlenecks: Speed up building where demand is highest, rather than freezing land in prime areas.
  • Urban balance: Gradually shift investment from the center to the edges while leveraging existing networks.
  • Fairness by location: Fees scale with value and proximity—holding a prime site carries a higher annual cost.
  • More supply, quicker: Convert raw land into real housing and mixed-use projects, improving affordability over time.

White Land Fees System — How are fees calculated?

The rule of thumb is simple:
Annual Fee = Land Market Value × Band Rate

Worked example (answers “how much are white land fees?”):

  • Plot size: 2,000 m²
  • Market price estimate: SAR 2,500/m²
  • Land value = SAR 5,000,000
  • In Band 1 (10%) → Annual fee = SAR 500,000
  • In Band 3 (5%) → Annual fee = SAR 250,000

Actual valuation follows the competent authority’s methodology. The example is for illustration only.


White Land Fees System — How to check your band (step-by-step)

  1. Open the official map at momrah.gov.sa.
  2. Search by location or zoom to your neighborhood and parcel.
  3. Confirm the band layer (1–4) and the applicable rate.
  4. Save a snapshot or the map link for reference/queries.
  5. If you hold multiple titles or a large tract, check each title—boundaries can cross band lines.

White Land Fees System — Does “land fencing” remove the fee?

No. Fencing (site hoarding/perimeter walls) is a compliance and site-management step, not full development. It does not by itself exempt you from the White Land Fees. The system’s logic is to activate plots into usable residential/mixed-use products—permitting and actual construction are what change a plot’s status.


White Land Fees System — Smart ways to respond

  • Plan to build: In higher bands (10% or 7.5%), consider phased development, joint ventures, or a timely exit.
  • Get a fair valuation: Fees track market value; a professional, evidence-based appraisal helps avoid over- or under-estimation.
  • Monitor boundary updates: Bands can be updated; new boundaries will apply in subsequent cycles.
  • Balance risk and reward: Paying 10% on a prime site may still be rational if the end-use value and absorption are strong—often a reason to accelerate permits and construction.

FAQs — White Land Fees System

1) How do I know if my neighborhood is inside a band?

Use the official map at momrah.gov.sa. You’ll see the band (10%, 7.5%, 5%, 2.5%) that applies to your parcel.

2) Can the band change within one neighborhood?

Yes. Band lines can cut through a district. Always check your exact parcel on the official map.

3) Does fencing my land exempt me from fees?

No. Only actual development (permits + construction) can change fee status; fencing alone doesn’t.

4) Quick way to estimate “how much are white land fees”?

Identify your band, then multiply land value × band rate. Use the worked example above as a template.

5) What happens if the band boundaries are updated?

The new band would apply in future assessment cycles per ministry schedules—so re-check periodically.

6) Best strategy to reduce fee exposure?

Move toward development or a realistic transaction (JV/sale). Inaction in a high band is costly year after year.


Tools & quick reads

Before deciding, benchmark your plot’s band against real market pricing:


Conclusion

The White Land Fees System uses geographic bands—10%, 7.5%, 5%, and 2.5%—to guide growth: higher signals where demand is strongest, lighter ones where activation is needed. By confirming your band on the official map and getting a realistic market valuation, you can choose the right path—develop, partner, or divest—with confidence.
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