Saudi Arabia

Saudi Arabia is the largest economy in the Arab world and one of the fastest-growing real estate markets globally. Vision 2030 has committed over USD 1 trillion to tourism, housing and infrastructure, creating new demand zones and a market that looks materially different from just a few years ago.

The residential sector is valued at around USD 72.8 billion in 2026 and is expected to reach nearly USD 103 billion by 2031. In January 2026 the country opened parts of its property market to foreign buyers in a structured way, allowing ownership in designated zones across all major markets.

Property prices across Saudi Arabia’s main cities have increased significantly over the past five years, with Riyadh leading the growth. According to Knight Frank, certain unit types in the capital have nearly doubled in value since 2021.

Typical purchase prices by property type in Riyadh are indicative estimates based on city average per sqm figures; actual prices vary by location and specification.

Metropolitan Insight: entry prices in Saudi Arabia are still lower than in Dubai. A family apartment in Riyadh priced around USD 213,000 would typically cost USD 600,000 or more in Dubai. Riyadh’s 8-9% average yield is higher than most Dubai sub-markets. The key difference is market stage: Saudi Arabia is still in a growth phase, while Dubai is more mature.

Saudi Arabia’s property market is concentrated in four key zones:

Riyadh. The largest market, accounting for around 41% of total value, and the main hub of Vision 2030 activity. Northern areas such as Al Malqa, Hittin and An Narjis are the most expensive, with some properties nearly doubling in value over five years. More affordable districts such as Ar Rimal and Qurtubah offer gross yields of around 7-10%. Riyadh is also preparing for Expo 2030. In 2025 apartment rents rose 19.6% and villa rents 17.2%.

Jeddah. The second-largest city and main commercial port on the Red Sea, with a strong expat community and lower price volatility than Riyadh (properties typically sell at 97-99% of asking price). Average gross yield is about 7.89%. North Jeddah, especially Obhur, is the fastest-growing residential area, while the Corniche attracts most branded developments.

Red Sea coast. Led by Red Sea Global, a Public Investment Fund company. Phase 1 infrastructure is complete. Shura Island is the hospitality hub with branded residences and Laheq Island is focused on residential living and golf, with handovers expected from 2028. All properties on both islands are in zones designated for foreign ownership.

Eastern Province. The Dammam metropolitan area, including Al Khobar, Dhahran and Jubail, is the energy hub, with year-round rental demand from Aramco and the petrochemical sector. Prices range from SAR 2,500 to 7,000 per sqm, and the region is expected to grow at an estimated 8.41% CAGR through 2031, the highest among Saudi metros.

Saudi Arabia is delivering one of the largest development programmes globally. For buyers it creates rising housing demand around new job hubs and entirely new investment locations.

• Red Sea Global: Phase 1 infrastructure is complete, with thousands of hotel rooms operating and branded residences already delivered.
• ROSHN: PIF-backed large-scale residential communities, such as SEDRA in north Riyadh and ALAROUS in north Jeddah, aimed at mid-market demand.
• New Murabba: Riyadh’s new downtown, covering 19 square kilometres in the northwest, with over 100,000 planned homes and the Mukaab landmark.
• Diriyah: a cultural and luxury destination near Riyadh valued at around USD 62 billion, targeting millions of visitors annually by 2030.
• NEOM and Qiddiya: longer-term projects. NEOM’s timeline has been adjusted and parts of The Line are under review, while Qiddiya is progressing with some attractions open.

Makkah and Madinah: non-Muslims cannot buy property in either city under the 2026 law. Muslim expatriates may own property only in designated zones under conditions set by REGA. Riyadh, Jeddah and the Red Sea coast are open to foreign buyers within approved areas.

The 2026 foreign ownership law created a clearer framework for international buyers. All foreign purchases must be completed through the official Saudi Properties digital platform and registered with the Real Estate General Authority (REGA). Unregistered ownership is not legally valid.

Most off-plan purchases use developer payment plans tied to construction milestones. Expat residents with a valid iqama can access mortgages through banks such as Saudi National Bank, Al Rajhi Bank and Riyad Bank, with rates of 5.8-7.8% and LTV of 70-85%. Non-residents typically buy in cash.

• Foreign buyers can purchase only within REGA-approved designated zones; iqama holders may additionally own one residential property outside those zones for personal use.
• Penalties for false information or unregistered transactions can reach SAR 10 million, so legal guidance is strongly recommended for first-time buyers.
• Residency: property ownership does not automatically grant residency. Residency is usually tied to employment (iqama) or separate programmes such as Premium Residency.

Saudi Arabia’s markets span very different environments, from the business capital of Riyadh and the coastal character of Jeddah to the self-contained luxury of the Red Sea destination and the heritage of Diriyah.

• Red Sea coast: year-round sun, world-class diving and branded resort residences already operational.
• Diriyah and heritage: the At-Turaif UNESCO World Heritage Site is open, with dining and a growing calendar of cultural events.
• Entertainment pipeline: Qiddiya (Six Flags open), King Salman Park, Boulevard Riyadh City and Expo 2030.
• International schools and healthcare: established British, American and IB school networks and private hospitals in Riyadh and Jeddah.
• Taxes: no personal income tax on salaries or rental income for individuals, and no annual property holding tax.
• Climate: over 300 sunny days a year and mild winters across all markets.

Data sources: Global Property Guide Q1 2026; Cavendish Maxwell KSA Residential Market Performance 2025; Mordor Intelligence (January 2026); Knight Frank KSA; King and Spalding, new foreign ownership law; REGA. Last reviewed April 2026.