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)
- Open the official map at momrah.gov.sa.
- Search by location or zoom to your neighborhood and parcel.
- Confirm the band layer (1–4) and the applicable rate.
- Save a snapshot or the map link for reference/queries.
- 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:
- Lands for Sale
- Lands in Riyadh
For a concise policy recap, see our analysis:
The New White Land Fees: What Changed?
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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