Why Saudi Arabia’s Property Market is Attracting Attention

Saudi Arabia is undergoing a massive transformation under Vision 2030, with more than $1 trillion in real estate and infrastructure projects underway. From futuristic cities like NEOM to luxury coastlines and new urban centers, the Kingdom is no longer a closed market—it’s evolving into a regional investment hub.

Key Drivers in 2025:

• Major legal reforms allowing foreign property ownership

• Massive development projects across tourism, housing, and tech

• Diversification from oil to real estate, logistics, and tourism

• Demand fueled by returning Saudis, expats, and global investors

Can Foreigners Buy Property in Saudi Arabia?

Yes—with limitations. In 2024, Saudi Arabia passed new laws that formally allow foreigners (non-GCC nationals) to own property in designated areas, subject to approval.

Foreign Ownership Rules (2025):

• Foreigners can buy residential, commercial, or investment property

• Must obtain a license via the Ministry of Investment (MISA)

• Ownership is limited to non-strategic areas (military/security zones excluded)

• Most activity still happens in major cities and designated economic zones

• Land ownership possible, but resale may be restricted in certain zones

Residency by investment is under review, but no official real estate visa program is active yet.

Who Should Buy in Saudi Arabia?

✅ Best suited for:

• Gulf and international investors seeking long-term growth

• Corporate landlords leasing to expats and foreign companies

• Buyers looking for early access to mega-projects (e.g., NEOM, The Line)

❌ Less suited for:

• Airbnb/STR-focused investors (short-term rentals not widespread)

• Buyers needing immediate liquidity (market still maturing)

• Low-budget buyers (quality units often mid to high-tier)

Top Cities & Investment Zones in Saudi Arabia (2025)

1. Riyadh

• Capital and business hub

• Rapid urbanization and high demand from expats

• Government-backed development zones and gated communities

• Focus on commercial offices, family housing, and mixed-use towers

2. Jeddah

• Coastal city and gateway to Mecca

• Strong luxury segment and family housing market

• Red Sea Project nearby boosting tourism potential

• Popular with Saudi nationals and regional investors

3. NEOM (Tabuk Region)

• $500B megacity with zero-carbon infrastructure

• Limited but highly speculative real estate activity

• Only approved investors and entities allowed to buy so far

• Long-term investment horizon

4. Al Khobar & Dammam

• Key Eastern Province cities near Bahrain and oil centers

• Strong corporate tenant base, especially for energy companies

• Gated villas, commercial parks, and waterfront projects

5. Medina & Makkah (Limited Access)

• Ownership only possible for Muslims

• Mostly religious tourism-related investments

• Strict building regulations and resale rules

What Can You Buy as a Foreign Investor?

• Apartments in mixed-use towers in Riyadh and Jeddah

• Villas in gated compounds (Riyadh, Dammam, NEOM)

• Offices and retail units in commercial districts

• Land plots (only with MISA license and development plan)

• Hotel-serviced residences in coastal projects

Average Property Prices in 2025 (Estimate)

Rental Yields in Saudi Arabia (2025)

Short-term rental platforms are still evolving and face local regulations. Long-term leases remain dominant.

Legal Framework for Foreign Buyers

• Must obtain property ownership license via MISA

• Due diligence and title checks mandatory before purchase

• Purchase must align with approved use (residential/commercial)

• Resale restrictions may apply in certain zones for up to 5 years

• Inheritance laws follow Sharia—legal structuring recommended

Taxes and Fees

• No personal income tax

• No capital gains tax

• 5% VAT on new property purchases

• Title deed registration fee: 1%

• Developers must be registered with Off-Plan Sales Committee (WAFI)

Opportunities & Risks

✅ Opportunities:

• Early access to mega-developments (NEOM, Red Sea Project)

• Strong rental demand in urban zones

• Government support for investor-friendly reforms

⚠️ Risks:

• Regulatory framework still evolving

• Cultural and religious sensitivities in some cities

• Illiquidity and limited historical price transparency

Future Outlook for Saudi Arabia’s Real Estate Market

By 2030, Saudi Arabia aims to house over 1.5 million new residents across its mega-projects and expanded urban centers. In 2025, Riyadh, Jeddah, and Dammam remain the most practical choices for real estate investment, while NEOM and Red Sea developments offer speculative—but potentially high—returns.

The Kingdom’s legal openness and infrastructure spending signal a new chapter, but investors must proceed with local legal counsel and long-term vision.

Conclusion

Saudi Arabia is not just transforming its skyline—it’s reshaping who can participate in its economy. With new laws opening access to foreign investors, a strategic approach to location, legal compliance, and project quality will be essential. Buy in the right zone, with the right structure, and Saudi Arabia could offer some of the Gulf’s most rewarding opportunities over the next decade.