Market median per sqm$1,653/m²The Riyadh market as a whole. The Housebook catalogue in Saudi Arabia is branded residences (Diriyah, Four Seasons), so the two segments are fundamentally different. Source: Cavendish Maxwell, KSA Residential Q1 2026
The new ownership law allows purchases inside specially designated zones of Riyadh, Jeddah and other cities
A foreign resident holding an iqama may buy a home for personal use
In exchange for a single 5 percent transaction fee there is no capital gains tax and no rental income tax for a non-resident individual, and the riyal has held its peg to the dollar at 3.75 for forty years running
Sourced gross rental yield for the country runs at 6.75 to 8.89 percent, above the regional average, and the macro backdrop is strong: GDP growth of 4.5 percent and a record 123 million tourist visits in 2025
What to keep in mind
While Mecca and Medina remain almost entirely closed
The premium segment needs separate approval from the Ministry of Interior
A bank mortgage is practically out of reach for a non-resident without local residency, and developers fill that gap with their own installment plans running through the WAFI escrow programme
The main thing for an investor here is not the market but the procedure: the law has been in force for under a year, and enforcement practice, the exact zone boundaries and the depth of the secondary market for non-residents have not yet been tested by time
Market
The property market in Saudi Arabia right now
$1,653/m²Market median per sqmThe Riyadh market as a whole. The Housebook catalogue in Saudi Arabia is branded residences (Diriyah, Four Seasons), so the two segments are fundamentally different. Source: Cavendish Maxwell, KSA Residential Q1 2026
17Projects in the catalogue
2026-10-14Exchange rate as ofexchangerate-api.com
Spread of price per sqm in the catalogue
Median $3,733/m²
$2,638/m² lower quartileupper quartile $8,911/m²
based on 17 of 17 projects
A price trend chart will appear once enough observations accumulate: daily snapshots of the catalogue aggregates have been collecting since August 2026, and we will not draw a line through a single point.
Economy
The market economy in numbers
The figures come straight from primary publishers: the World Bank, the IMF and the Bank for International Settlements. Every value carries its own date and publisher, and the full source list opens below the block.
Foreign ownership in Saudi Arabia only opened in 2026, and it does not cover the whole country: it runs zone by zone, as designated by the General Real Estate Authority (REGA). Mecca and Medina are closed to foreigners almost entirely, and the premium residential segment needs a separate approval from the Ministry of Interior.
Ownership law for non-Saudis
in force since January 2026, REGA defines the zonesThe Council of Ministers approved the law on 8 July 2025, and it took effect roughly 180 days later; it opens purchases to non-resident individuals and companies in designated zones of Riyadh, Jeddah and other cities.
A single transaction fee replaced VAT and remains the buyer main cost: there is no personal income tax and no rental tax for a non-resident individual in Saudi Arabia.
Real estate transaction tax (RETT)
5 percent of the deal valueIn force since 10 April 2025, it replaced the earlier 15 percent VAT on property deals; administered by ZATCA.
Buying property does not grant Saudi citizenship, but it opens a separate Premium Residency category: a long-term right to live in the country without a sponsoring employer, tied to owning the specific unit.
Premium Residency threshold
4,000,000 SAR, about 1,070,000 USDThe unit must be residential, fully built, free of a mortgage and valued by an accredited TAQEEM appraiser.
Off-plan sales in Saudi Arabia are built around escrow much like in the UAE, but under their own name: the WAFI programme run by REGA. The buyer money goes not to the developer but to an account held by a licensed third party, and is released as construction is confirmed.
Escrow on off-plan (WAFI)
mandatory, held by a licensed third partyFunds are released to the developer in tranches after a certified engineer confirms a construction milestone, and are shielded from the developer creditors in the event of bankruptcy.
financial guarantee or project completion insuranceRegistration in the system requires approved architectural plans, a feasibility study and a standardized sale contract.
Check that the unit sits inside a zone REGA has designated open to foreign buyers.
For the premium residential segment, obtain approval from the Ministry of Interior.
Check the project registration in WAFI: escrow account, developer financial guarantee, approved plans.
Agree the payment schedule and match it against construction milestones confirmed by an independent engineer.
Pay strictly into the project escrow account; funds are released to the developer in tranches as progress is confirmed.
When buying without residency, discuss an installment plan with the developer instead of a bank mortgage.
At closing pay the single 5 percent RETT fee and register the transfer of title.
Money
Cost of money and of holding
A bank mortgage is practically out of reach for a non-resident in Saudi Arabia, and the market runs on developer installment plans instead. That changes both the entry price and whose solvency carries the risk of the deal.
Cost of money and of holding
Cost item
Rate
What it means
Non-resident mortgage
practically unavailable without residency (an iqama)
Most Saudi banks require an iqama and local income to issue a home loan.Source: Sands of Wealth, ARAB MLS
Developer installment plan
10 to 20 percent down, the remainder over 3 to 5 years of construction, often at 0 percent
With residency, the bank rate runs 5 to 8 percent a year with a down payment of 25 to 35 percent.Source: Crown Continental, rakez.sa
Currency risk
the riyal is pegged at 3.75 SAR to 1 USD
The peg has held since June 1986, and the central bank SAMA defends it with reserves above 400 billion USD.Source: SAMA, Vision2030.ai
Yield
Rental yield: what a source confirms
Below are published gross yield ranges with publisher and year. They are a market benchmark, not a computation for a specific unit: the platform has no rental model of its own for Saudi Arabia, so none of these figures is fed into a calculator.
Average gross yield, country wide
6.75 percent, Q1 2025The figure compares median rental and purchase prices for 1 to 3 bedroom flats in the largest cities.
about 8.89 percent in Riyadh and 7.89 percent in Jeddah, Q3 2025Since September 2025 Riyadh has a 5-year rent growth freeze capped at 0 to 2 percent a year; Jeddah has no such rule and rents grow 3 to 6 percent a year.
The risks of the Saudi market sit not in market conditions but in how new the rules themselves are. Below are the ones that change a decision rather than decorate it.
The main risk here is procedural, not market: the foreign ownership law has been in force for under a year and has no history of enforcement yet.
More detail
REGA is disclosing the exact boundaries of the permitted zones in stages, and the depth of the secondary market for a non-resident, meaning how easily a unit resells, has not been measured by anyone yet. The premium residential segment also needs a separate Ministry of Interior approval, and the timeline for that approval has not settled yet.
The second risk concerns money that does not come from a bank: without residency a mortgage is practically out of reach, and the deal rests on a developer installment plan, meaning on the developer solvency years into the future.
More detail
Add to that a city asymmetry: in Riyadh rent growth is capped by law, in Jeddah it is not, and the same yield on paper in the two cities carries a different risk for a long-term landlord.
Risk 1
How long the law has been in force
since January 2026, with no enforcement history
The exact zone boundaries and the depth of the secondary market for non-residents have not yet been tested by time; the premium residential segment needs separate Ministry of Interior approval.
The price level of our catalogue sits higher up this page and is computed on our own sample. This block carries only external dynamics and the macro backdrop: the aggregate does not measure them and they do not argue with it.
Riyadh apartment price growth
10.6 percent year on year, Q2 2025The figure covers the Riyadh residential market as a whole, without a district breakdown.
These are projects priced below the country median per square metre ($3,733 per sqm, sample of 17 out of 17 projects). Sorted by price per square metre. Prices converted to dollars at the rate of 2026-10-14.
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Can a foreigner actually buy property in Saudi Arabia?
Yes. The Council of Ministers approved the ownership law for non-Saudis on 8 July 2025, and it took effect roughly 180 days later, in January 2026. It opens purchases to non-resident individuals and companies inside zones REGA designates in Riyadh, Jeddah and other cities. Mecca and Medina remain almost entirely closed, with narrow exceptions applying only to Muslims in specific cases. A resident holding a valid iqama may buy for personal use, while the premium residential segment needs separate Ministry of Interior approval. The law has been in force under a year, and REGA is still revealing the exact zone boundaries in stages.
Is it possible to handle the whole purchase remotely, without visiting in person?
Yes. A foreign buyer can complete the deal through an agent under a power of attorney without traveling to Saudi Arabia. The power of attorney is issued and certified electronically via the Ministry of Justice Najiz platform, including the Virtual Notary service for people abroad, and REGA property registration system explicitly allows filing by a representative holding a valid power of attorney. For a corporate buyer, the Ministry of Investment requires a power of attorney for the representative, legalized through a Saudi embassy. There is no direct official REGA statement on a fully remote deal, but this practice is confirmed by industry sources.
How should the purchase funds be transferred?
Money for the purchase does not go straight to the seller but into a dedicated account opened by a Saudi bank under SAMA rule 200.2.4. This requires a digital ID issued under Saudi law, a passport copy, a residential address abroad and a Saudi contact number linked to that ID, plus a contract with a broker or developer and an authenticated bank statement from the customer home-country account. Joint accounts and offshore authorized signatories are not allowed, and the account is used only for the property deal, with no cards issued. Under the rules implementing the non-resident ownership law, disposals of rights in the four designated cities carry a fee of up to 2 percent, and violations are punishable by fines of up to SAR 10 million.
What taxes should a buyer and owner expect?
The main transaction cost is the single 5 percent RETT fee, paid on both purchase and sale instead of a capital gains tax, which does not apply to an individual. Rental tax for a foreign non-resident is effectively absent. At the same time, in the zones open to foreigners in Riyadh, Jeddah and two other cities, a non-resident disposal of rights carries an additional fee of up to 2 percent under the new implementing rules, so the total burden on a deal there can run to about 7 percent.
How do the different forms of property ownership in Saudi Arabia differ from each other?
The foreign ownership law divides the market into zones rather than opening the whole country at once. Inside the boundaries REGA designates, in Riyadh, Jeddah and other cities, full ownership of housing is available to non-resident individuals and companies. Mecca and Medina remain almost entirely closed to foreigners, with narrow exceptions only for Muslims in specific cases. A resident holding a valid iqama may buy a unit for personal use in a permitted zone, while deals in the premium residential segment need separate Ministry of Interior approval. Outside the designated zones the law does not grant a foreigner ownership rights.
How risky is it to buy off-plan?
Off-plan purchases must run through the WAFI escrow programme managed by REGA: buyer funds go to an account held by a licensed third party and are released to the developer in tranches only after an independent engineer confirms a construction milestone, and they are shielded from the developer's creditors in case of bankruptcy. To register in the system a developer must provide a financial guarantee or completion insurance, approved architectural plans and a feasibility study. Still, the foreign ownership law itself has been in force for under a year, and enforcement practice, including how WAFI works on specific off-plan projects for non-residents, has not yet been tested by time.
How do renting out and property management work in Saudi Arabia?
All lease contracts in Saudi Arabia, residential and commercial, regardless of term, must be registered on the government Ejar platform run by REGA, otherwise they are unenforceable. Registration is done by a licensed broker: party and property details are entered, the contract is electronically certified, and a fee is paid. According to legal sources, over 5 million lease contracts have been registered via Ejar. A separate bylaw on real estate property management, meant to govern the relationship between owners and management companies, was still at the public consultation stage in spring 2026 and has not yet taken effect. Riyadh has applied a five-year rent growth freeze of 0 to 2 percent a year since September 2025, while Jeddah has no such cap.
What ongoing costs come with owning the property?
There is no fixed government rate for the annual common-area service fee in Saudi Arabia: the amount is set by a vote of the owners association general assembly under the Mullak platform and varies by property. A foreign owner pays on equal terms with other co-owners, and non-payment can trigger enforced collection through the same platform. There is also an ongoing industry discussion on whether such dues should carry 15 percent VAT if the owners association is treated as a service provider, with no final ruling yet. Official sources do not publish set fee amounts per square meter, since the rate is determined individually for each property.
Can I actually live in the property myself, and on what basis?
A foreigner can live in a purchased home as a resident, with a valid iqama - the ownership law explicitly allows a resident to buy a unit for personal use. Buying in the premium residential segment additionally requires approval from the Ministry of Interior. A separate route is Premium Residency 'property owner' from 4,000,000 SAR, about 1,070,000 USD: it grants a renewable right to stay without an employer sponsor, but only while ownership of the unit continues. Neither route leads to citizenship.
How can the property be resold later?
According to legal reviews, there is no strict minimum holding period before a foreigner can resell: a ready unit in a permitted zone can be sold at any time via registration with REGA. Separate restrictions apply to off-plan purchases, units on land owned by a non-Saudi, and property tied to Premium Residency, whose sale without replacement ends the resident status. Resale carries the same 5 percent RETT as purchase, and per Deloitte and REGA, four cities add a fee of up to 2 percent for non-Saudis on the transfer of rights.
What documents are needed for the deal?
REGA has not published a single official checklist specifically for foreign buyers, but practice shows the deal needs a verified Absher digital ID, a passport or iqama for a resident, a notarized power of attorney if the buyer is not attending in person, and an electronic sale contract signed via the Saudi Properties portal. A legal entity additionally needs commercial registration. Before the electronic title deed (sakk) is issued, payment of the RETT fee must be confirmed. The list is compiled from REGA's general registration requirements and practical guides; there is no single official checklist for foreigners as of mid-2026.
What currency risks should I consider?
The riyal is pegged to the dollar at 3.75 SAR and has held that rate for forty years, so a classic devaluation risk for a dollar-based investor is practically absent: fluctuation reduces to the risk of the dollar itself on world markets. What does matter is payments inside the deal and ownership: the transaction fee, escrow installments and property upkeep are denominated in riyals, so for an investor earning in another currency the real cost of these payments shifts with the dollar exchange rate against their home currency, not with any riyal-specific risk.
Is it worth hiring a lawyer, and what would they check?
The Law of Real Estate Ownership by Non-Saudis and its implementing regulations do not mandate hiring a lawyer for a non-resident individual: the deal runs through the REGA/Saudi Properties digital platform, requiring a digital identity, a bank account in the Kingdom and embassy verification. Foreign companies need a notarized power of attorney for their representative and legalized documents. No explicit requirement for notarizing the sale contract itself was found in the reviewed material. Given how new the law is, an independent check of the zone, the developer and the contract remains a sensible precaution rather than a formal obligation.
What rental yield can I realistically expect?
According to published sources, the countrywide average gross rental yield in Saudi Arabia is 6.75 percent (Q1 2025), and it runs higher in the largest cities: about 8.89 percent in Riyadh and 7.89 percent in Jeddah (Q3 2025). The gap between the two cities matters for a long-term calculation: since September 2025 Riyadh has had a 5-year rent growth freeze capped at 0 to 2 percent a year, while Jeddah has no such rule and rents there grow 3 to 6 percent a year. These are market benchmarks, not a calculation for a specific property.
What are guaranteed-income programmes actually about?
There are no government guaranteed rental yield programmes in Saudi Arabia. Individual private developers and investment platforms offer such products on their own terms: as of 2025-2026, a project in Northern Riyadh advertises managed returns of up to 10 percent a year with full rental management by an operator, and a licensed fractional-ownership platform states returns of up to 30 percent a year. These are commercial promises from specific companies, not verified by an independent regulator and not guaranteed by law. Such figures should be treated as a marketing offer for a particular product, not as a market norm.
Do I need a visa to own property in Saudi Arabia?
Ownership of a unit inside a designated zone by itself does not require a visa or residency: the law in force since January 2026 allows purchase by foreign individuals and companies regardless of their residency status. If a foreigner is buying a home for personal residential use as a resident, a valid iqama is required, and deals in the premium residential segment additionally need Ministry of Interior approval. Separately, a purchase from 4,000,000 SAR can open the Premium Residency category, but that is a distinct procedure, not something that happens automatically upon title registration.
The market figures are the live Housebook catalogue aggregate for this country plus an external publisher's reading where one has been found and verified. The legal, visa and tax facts come from the country profile: every number names its source.
Methodology
The median and quartiles are computed over active catalogue projects with a known price per square metre. Prices are converted to dollars using a single exchange rate snapshot rather than a mix of dates, so the figures stay comparable.
How often it updates
The catalogue aggregates are recomputed every day. The country profile and the external readings are updated by hand: the date of the last check is shown next to every source in the list below.
The figures on this page describe the market and the rules as of the date they were checked. This is reference information, not an offer, investment advice or a promise of returns.
