Buy property in Saudi Arabia

If you are planning to invest in property in Saudi Arabia, it is important to understand not only the growth prospects but also the legal nuances. The market itself is attractive: the price per square metre is not yet overheated, the tax burden is virtually non-existent, and regulation is becoming increasingly transparent. However, how can a citizen of another country to buy a home in Saudi Arabia so as not to face encumbrances or refusal of registration? That's what this article is about. I will deal with the key types of objects, the real price of entry, the peculiarities of legal registration and the main mistakes to avoid.

Why buying property in Saudi Arabia has become an interesting investment

It all started with the national strategy Vision 2030. Its implementation changed not only the country's macroeconomy, but also the residential and commercial property market. Previously, the public sector dominated, and it was difficult for private investors to build themselves into the systems. Now the rules have become more flexible. Property investment in Saudi Arabia has for the first time been fully supported at the legislative level. This is evident not only in the fact that foreigners are allowed to own properties in certain zones, but also in the legal recognition of transactions involving non-residents.

Domestic demand for housing has increased by 27% since 2022. The country's young population is entering the rental and purchase market en masse, especially in the cities of Jeddah and Riyadh. This is pushing developers to actively develop new neighbourhoods. For the investor, this means one thing: the facility will not remain empty, whether it is housing or commercial property.

The authorities have also simplified administrative procedures. Today it has become possible for foreigners to buy housing in Saudi Arabia without mandatory registration of a legal entity. This is especially relevant for private investors who do not plan to conduct operational activities in the region. The registration of the transaction is carried out through an electronic platform, and the structure of the contract itself is as close to international practice as possible.

The financial burden on the owner of the property is minimal. The property market in Saudi Arabia does not imply regular property taxes, and registration fees are symbolic. This means that the capital is protected from ‘dilution’, and investment returns can be higher than in European jurisdictions.

Add to this the political and legal stability, the protection of investor rights at the level of the Ministry of Justice, and it becomes obvious why to buy property in Saudi Arabia. This is a window of opportunity that may close when the market is completely redistributed between local players and large holdings.

The benefits of buying property in Saudi Arabia are clear, especially if you consider a long-term strategy. Unlike markets where regulation changes under the pressure of crises, here the government is consistently implementing reform. And while it is in its active phase, a non-resident can enter the market on attractive terms, for example, to buy a house in Riyadh, where the cost per square metre is still lower than in Dubai.

What types of property can be bought in Saudi Arabia: from apartments to commercial premises

The choice of properties for the investor is quite wide. Property types in Saudi Arabia range from compact studios in residential towers to large-scale building plots. However, it is important to bear in mind that access to a particular type of property depends not only on budget, but also on the location, form of ownership and legal status of the buyer.

The most common format is residential apartments in new buildings. Buying an apartment in Saudi Arabia is possible in projects such as Jeddah Waterfront or Riyadh Front, where developers offer housing of international standards, with infrastructure and the possibility of renting. These properties are usually completed through a secure registration system and the transaction is much simpler.

Along with apartment complexes, private houses are attracting a high level of interest. Foreign investors are increasingly looking to buy a villa in Jeddah, a coastal city with a developed expat environment. Prices vary depending on proximity to the sea and the availability of land ownership permits. Such deals require separate legal due diligence as land rights in some areas are still restricted to non-residents.

Those who are planning to invest in property in Saudi Arabia should pay attention to building plots. Land in Saudi Arabia can be provided for commercial purposes, especially in regions where government megaprojects are being implemented. However, here it is important to understand the specifics of registration, as such objects require prior approval from the municipality and certification.

• office space in the business districts of Riyadh;
• retail space in large shopping malls;
• hotel apartments in resort areas.

These assets are interesting from a leasehold perspective, especially in light of the growth in domestic tourism. Such investment properties in Saudi Arabia are often offered in a leasehold format (long-term lease with the right to use), and transaction support here requires particularly careful verification of contractual terms.

It is equally important to understand the territorial specifics. Riyadh has a strong business infrastructure, Jeddah has an emphasis on residential rentals and short-term living, and the NEOM area has innovative formats, including smart housing and mixed live/work zones. So, before you buy a home, it's worth deciding where it is best to buy property in Saudi Arabia. To do this, it makes sense to match the purpose of the purchase with the characteristics of the region.

To help orient you, below is a brief table with characteristics of the main formats of objects:

If you are planning to buy a property in Saudi Arabia for the first time, it is important not to focus on price only. The ownership structure, availability of infrastructure and the status of the land all play a key role. Housing for foreigners in Saudi Arabia may be legally accessible, but it is not always free from restrictions. This is why transaction support and pre-purchase due diligence are mandatory steps before buying.

Buying property in Saudi Arabia: how to find the right property

At the selection stage, many people make the mistake of relying solely on the external attractiveness of the project or the price per square metre. However, the market is heterogeneous, and where to look for property in Saudi Arabia largely determines the safety of the future deal. I advise you to start with registered agencies working under the accreditation of the Ministry of Housing. This reduces the likelihood of fraud and makes subsequent registration easier.

If you don't want to contact agents, you can use online platforms. However, be careful: buying property in Saudi Arabia directly from the owner is possible but requires legal due diligence, especially if you are not in the country. In such cases, the entire verification falls on the shoulders of the investor. Our practice shows that 4 out of 10 properties found on local sites have hidden encumbrances that are not reflected in the advert.

For those who are interested in housing in new complexes, it is worth contacting large developers. Developers in Saudi Arabia are required to register the project in the Eskan registry, as well as disclose the terms of instalments, delivery dates and the status of the land. When buying property from a developer in Saudi Arabia, you can count on transparent contracts, but even in such cases, not all risks are excluded. We have come across situations where, after signing a contract, the property did not pass the final certification by the municipality.

The primary property market in Saudi Arabia offers an advantage in price and design. But it is important to bear in mind: the share participation agreement is signed on a Shariah form, and all terms and conditions - including force majeure - are governed by Islamic law. That is why a non-resident needs a lawyer familiar with local standards.

As for the secondary market, there is more room for bargaining. The secondary market in Saudi Arabia is predominantly represented by objects with a full set of documents. But even if the deal seems simple, it is necessary to check who is the owner, whether there are inheritance disputes, arrests, or debts.

Before buying a flat in Saudi Arabia, it is important to request an extract from the cadastre. The Kingdom has an electronic registration system, but in some cases, records may not be up to date. Registration data is checked through Sakani, a government database that can only be accessed through an intermediary accredited in the region.

If you are planning to invest in a new-build property in Saudi Arabia, don't rely solely on advertising brochures. The developer is required to provide a construction licence, land deed, utility connection permit, and project declaration. The absence of any of these documents is a reason to postpone signing the agreement.

Let's compare the peculiarities of markets with the example of two types of transactions:

It is important to understand: the risks of buying property in Saudi Arabia are often hidden in small things - the wrong category of land, lack of permission to sell to a foreigner, unapproved reconstruction. All these nuances can be seen only after analysing the title documents and consulting a lawyer.

Due diligence when buying a property in Saudi Arabia: what to check before signing a contract

If a client manages to find an interesting property, the difficulties do not end there - on the contrary, everything is just beginning. Legal due diligence of real estate in Saudi Arabia is a mandatory stage before signing any agreement. It is not enough to simply read the contract or visually inspect the flat. It is important to evaluate the entire package of documents, the legal status of the land, as well as the validity of the seller's authority.

The first point to pay attention to is the title. Check its existence, the history of the transfer of rights, the absence of restrictions, or legal disputes. This is especially true when it comes to a deal to buy property in Saudi Arabia, where it is not uncommon when the land or object belonged to previously state structures, and the rights to them were transferred under a simplified scheme.

Before you buy property in Saudi Arabia, you need to make sure that the object is not under arrest, not pledged, and is not the subject of collective inheritance. This is where the main mistakes are made when buying property in Saudi Arabia - the buyer signs the contract, not knowing that the cadastre still lists another owner or there is a ban on alienation.

Additional verification should be done on the seller himself. We always check:

• the identity of the owner (by national ID or Iqama);
• his tax history;
• the presence of debts, including utility bills;
• the real consent of all co-owners (in case of shared ownership);
• the lawful status of the land plot.

Buying a property in Saudi Arabia by a non-resident is allowed only in those areas where foreigners are allowed to own. There is often a situation where a flat is located in a tower authorised for expats, but the land under the building has a special status. This makes registration impossible. Therefore, the purchase of housing by foreigners in Saudi Arabia is only possible after confirming the appropriate purpose of the plot.

Before concluding a contract, it is essential to obtain a property clearance certificate, which confirms that the property has no outstanding tax or technical debts. Without it, it is impossible to register property in Saudi Arabia for a foreign person, as the registry automatically blocks the operation. In addition, it is worth requesting a technical passport, which can be used to determine the presence of unapproved changes or reconstructions that are not reflected in the documentation.

Let's compare the mandatory validation items in the table:

Practice shows that it is at this stage that a transaction either becomes safe or is derailed. There have been cases where an object was advertised as “clean”, but a legal analysis revealed that it was pledged or had already been sold under a preliminary contract. That is why I always emphasise: what to pay attention to when buying property in Saudi Arabia is not only the object itself, but also the accompanying legal documents, without which the transfer of rights is impossible.

How to buy property in Saudi Arabia: step-by-step instructions for foreign investors

For those experiencing the Middle East market for the first time, a clear structure is important. Despite ambitious reforms, the process of buying property in Saudi Arabia still requires care. The peculiarities of legal clearance, the difference in due diligence approaches and the specific registration system make accompaniment particularly meaningful. Below, I will describe step-by-step how to complete the purchase with minimal risks.

The table below is a brief overview of the paperwork required at each stage:

If you are interested in how to register a property in Saudi Arabia without permanent residence in the country, it is possible through a proxy, with a notarised power of attorney translated into Arabic. This scheme is convenient if you invest remotely or purchase several properties at the same time.

Property prices in Saudi Arabia: what to expect as an investor

The value of property in the Kingdom continues to grow. This is due not only to domestic demand, but also to the inflow of foreign investment. Property prices in Saudi Arabia depend on a number of factors: location, land status, type of development, category of object, and even legal restrictions. As a rule, housing for foreigners is offered in specially designated residential clusters, and prices in such areas are higher than for a similar area in ‘closed’ zones.

If you are wondering how much a flat in Saudi Arabia costs, go for a range of 450,000 to 900,000 SAR (USD 120,000-240,000) for a standard 90-120 m² apartment in Riyadh or Jeddah. In premium projects such as King Abdullah Financial District or Waterfront Jeddah, prices can exceed SAR 1.5 million (USD 400,000). At the same time, despite rising prices, there is no tax burden on owners, which makes home ownership more favourable compared to a number of other countries in the region.

The cost of housing in Saudi Arabia in the primary market is higher than in the secondary market. The primary market in Saudi Arabia offers new buildings, energy-efficient standards, engineering and documentation. But this does not always mean that there are no risks - not uncommon delays in delivery and additional fees for commissioning. However, such properties can be purchased in instalments, which is convenient for an investor who does not want a lump sum withdrawal of capital.

The secondary property in Saudi Arabia, on the other hand, can be 10-15% cheaper, especially if the owner is interested in a quick sale. However, it is important to carry out technical expertise and legal due diligence. Outdated communications, lack of coordination of redevelopment and debts on utility bills are frequent problems faced by buyers.

Large developers annually adjust their prices based on changes in demand and macroeconomic indicators. In neighbourhoods close to government mega projects, such as NEOM, value growth outpaces the general market. This year, property prices in NEOM have risen by an average of 21%, while the average market growth for the Kingdom was 13%.

Approximate prices by region (per m², in USD):

It is important for an investor to consider not only the price but also the payback period. In areas with well-developed rental infrastructure, profitability reaches 5-7% per annum. And in the long term, after the completion of the key stages of Vision 2030, you can expect higher rates, especially for tourism and innovation clusters.

If you are considering property investment in Saudi Arabia, it makes sense to evaluate three parameters at once: the current price, the cost of maintenance and the potential for liquidity. Undervalued prices in underdeveloped areas often do not justify themselves, as it can be difficult to sell such an object after 3-5 years. At the same time, investments in infrastructural zones where state support and international funds are in place bring stable income and capital growth.

Separately, it is worth saying that the conclusion of an agreement to purchase housing in Saudi Arabia is not accompanied by taxes on the transfer of ownership. The only costs are stamp duty (usually about 2.5% of the value), registration fees and notary's fees (if the deal is not digital). These conditions compare favourably with markets in Europe and Asia.

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Difficulties and restrictions when buying property in Saudi Arabia

When planning to buy property in Saudi Arabia, it is important to be prepared not only for the legal nuances but also for the restrictions that can unexpectedly change the course of the transaction. The main barriers relate to geography, form of ownership and source of capital. Unlike usual markets, there is a special system of admission, and not all objects are available for non-residents.

Firstly, there are restrictions on regions and types of properties. Not every property is open for purchase by a foreigner. Projects are often divided into three categories: closed (for citizens only), conditionally accessible (requires municipality approval) and open (fully accessible to expats). For example, it is possible for a foreigner to buy property in Saudi Arabia in areas specifically approved by state development programmes, but in the historic districts of Mecca or Medina, such an acquisition is prohibited.

Secondly, registration in the Iqama system is required - it is a resident card, confirming legal status in the country. Although ownership of property does not require permanent residence, many banking and notary procedures are impossible without a valid Iqama or similar identifier. This complicates the paperwork for those who plan to purchase a property in Saudi Arabia remotely or without visiting the country.

Additional difficulties arise when verifying the origin of funds. Banking compliance is particularly strict here. Before taking title to a property in Saudi Arabia, the buyer must prove the legality of the funds invested. Documents such as tax returns, bank statements or account statements are translated into Arabic and legalised. If there is insufficient confirmation, the transaction is blocked, and it is extremely difficult to recover the advance without legal assistance.

It is also worth considering the specifics of the registration. It is only possible to conclude a contract for the purchase of real estate in Saudi Arabia with the participation of a notary or a licensed registrar accredited in the Najiz system. Private agreements, drawn up without the participation of certified specialists, have no legal force. And to purchase a property in the Saudi Arabian property market, relying only on a preliminary agreement, means exposing yourself to high risk.

Let's compare the main barriers and possible consequences:

In addition to the legal aspects, there are political and cultural sensitivities to consider. For example, transactions between men and women are regulated separately if the parties are not related. And a site visit by a female investor may require an escort if the site is in a traditional neighbourhood.

It is not uncommon for prospective buyers to encounter procedural confusion. The procedure for buying property in Saudi Arabia differs city by city, and some rules can change without notice. Therefore, I advise against relying on general guidelines and instead work with an advisor familiar with local practices.

It is important to realise that even if you decide to buy a flat in Saudi Arabia in an open neighbourhood, this does not guarantee a straightforward transaction. Unregistered alterations, illegal additions or subtenants without contracts can all come to light at the most inopportune moment. Especially often, such risks arise when buying an apartment in Saudi Arabia on the secondary market.

When it comes to the law, a residential property purchase in Saudi Arabia can be considered null and void if one of the documents is not properly executed. Given the complexity of the local legal system, it is important to avoid rushing and follow formal procedures, from the first inspection to registration in the cadastre.

Buy property in Saudi Arabia with support: why you need a legal partner

Titling property in a different legal system is always a risk. Especially when it comes to a jurisdiction where Sharia law applies and registration procedures are regularly updated. That is why property purchase support in Saudi Arabia is not just an additional service, but a tool for investment protection and legal control over the transaction.

Unlike most countries where the secondary and primary property market is unified, in Saudi Arabia each region can set its own registration requirements. Without a dedicated lawyer, a buyer runs the risk of missing key steps or getting the paperwork wrong. For example, executing a property transaction in Saudi Arabia without a Najiz-registered notary is automatically invalid.

Support includes not only inspection of the property, but also participation in negotiations. In practice, when it comes to properties with shared ownership, there are situations where the seller tries to accelerate the sale without obtaining the consent of all co-owners. In such cases, the lawyer must require written confirmation; otherwise, in the future, it is possible to challenge the transaction. This is especially true if you are planning to buy a home in Saudi Arabia without being in the country personally.

• verification of ownership and cadastral registration;
• legal review of the contract;
• verification of the source of financing;
• registration of the property in the real estate registry;
• communication with notaries and the municipality;
• verification of the status of the land and the purpose of the plot;
• control of the transfer of rights and supporting documents.

Even if the seller provides the entire package of documents, it is not certain that they are up to date or legitimate. It is not uncommon for documents to become invalid due to delays in updating registries. In these situations, the conclusion of a contract of sale of property in Saudi Arabia without consultation may lead to a legal deadlock: formally, the deal is signed, but in fact the ownership right is not transferred.

The table below compares a stand-alone purchase with an assisted transaction:

When we talk about how to buy property in Saudi Arabia, it is important to understand that every document goes through a multi-stage verification process. Without experience in the local legal system, it can be easy to make a mistake - even in translation. A wrong name, inaccuracy in the cadastral plot number, or lack of a stamp - all this can lead to refusal of registration or blocking the transfer of rights.

Support is particularly important when buying commercial properties, hotel properties or building plots. Such transactions usually require municipal authorisations and involve additional inspections. Without professional support, property transactions for foreigners in Saudi Arabia can drag on for months, and end in rejection.

Conclusion

Interest in Saudi Arabia's property market is growing for good reason. Transparent regulation, growing domestic demand and Vision 2030 reforms have created new opportunities for investors from around the world. However, every successful case rests not only on an attractive price or location, but also on a sound entry strategy. With the legal specifics of the region, this is especially important. That is why assistance in buying property in Saudi Arabia becomes an essential element of any investment transaction.

Real estate transactions here take place in a strictly formalised environment. Without legal support, it is easy to encounter restrictions on access to registries, incomplete information about the seller's rights or invalid documents. If you are planning to invest in property in Saudi Arabia, start by assessing the risks rather than looking at adverts. It is important to understand not only what you can buy, but also how the property will be registered, what obligations and rights the buyer acquires.

Our practice confirms. support of the transaction on the purchase of property in Saudi Arabia allows you to avoid most mistakes. This applies to the selection of a suitable object, and analysing the legal status of the land, and the competent conclusion of the contract, and the subsequent registration of rights. At the same time, you do not waste time on bureaucracy and negotiations with municipalities - a lawyer or a trusted representative takes care of all this.