Makkah white land hits 28M sqm; what it means for developers

Saudi Arabia's Ministry of Municipalities and Housing said the total area of white land developed or traded in Makkah reached about 28 million square meters. White land refers to undeveloped plots within urban boundaries that the government has targeted through a tax and incentive program to boost housing supply.

The announcement signals progress on a policy introduced in 2016. The white land tax imposes an annual levy on undeveloped residential land to discourage hoarding and push owners to build or sell. The 28 million sqm figure covers both land that has been developed with infrastructure and plots that changed hands in the market, the ministry said in a statement.

Makkah is one of the most active markets for white land due to high demand for housing and religious tourism accommodation. The government's goal under Vision 2030 is to increase homeownership among Saudi citizens and unlock land for development. The latest numbers suggest the policy is gaining traction, though the ministry did not specify how much of the total was developed versus simply traded.

For developers with exposure to Makkah, the data carries two implications. Companies that hold large land banks may face rising carrying costs if they delay projects. Firms that move quickly to build could benefit from greater availability of serviced plots and clearer regulatory direction. The ministry's next update, expected within six months, will show whether the pace of development is accelerating or leveling off.