Saudi Arabia is set to open its real estate market to foreign buyers starting January 2026. This major reform allows foreigners and international companies to buy, own, and invest in various types of properties across the Kingdom. The move is part of Saudi Arabia’s Vision 2030 economic plan to diversify the economy and attract global investment beyond oil.
Under the updated Law of Real Estate Ownership by Non-Saudis, approved in July 2025, foreigners can purchase residential, commercial, agricultural, and industrial properties in designated zones. However, ownership in the holy cities of Mecca and Madinah is restricted mainly to Muslims. The new law also allows foreigners to hold shares in large projects like NEOM, Qiddiya, and Red Sea Global, and introduces digital fractional ownership options.
Saudi Arabia’s real estate market has been growing steadily with a total transaction value of SAR 118 billion (about USD 32 billion) in 2024, supported by massive urban development projects and increasing demand for residential and commercial spaces in Riyadh, Jeddah, and Dammam. Opening the market to foreign buyers is expected to boost foreign direct investment, enhance market quality, and create more jobs for Saudi citizens.
The Real Estate General Authority (REGA) is facilitating this transition with a new portal called Saudi Properties, listing eligible assets and zones for foreign ownership. The government also assures a secure regulatory environment with specific compliance and tax rules, including a flat 5% transaction tax and no annual property tax.
FAQs [Frequently Asked Questions]
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When will foreigners be allowed to buy property in Saudi Arabia?
Foreign buyers can start purchasing properties in Saudi Arabia from January 2026, following the approval of new real estate ownership laws. -
What types of properties can foreigners buy?
Foreigners can buy residential, commercial, agricultural, and industrial properties in designated zones, except Mecca and Madinah where restrictions apply. -
How will this reform affect Saudi’s real estate market?
The reform is expected to increase foreign investment, improve urban development quality, generate jobs, and stimulate market growth aligned with Vision 2030 goals.