How to buy a house in Riyadh?

Authored by the expert who managed and guided the team behind the Saudi Arabia Property Pack

Yes, the analysis of Riyadh's property market is included in our pack

Who is the author of this content?

SANDS OF WEALTH

A team specialized in real estate investing in MENA countries (Morocco, UAE, Oman, etc.)

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Riyadh. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At Sands of Wealth, we explore the Saudi Arabian real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Riyadh, Jeddah, and Dammam. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Is it actually easy or difficult for a foreigner to buy a house in Riyadh compared to western countries?

Buying property in Riyadh as a foreigner is moderately challenging but becoming significantly easier compared to previous years.

Saudi Arabia updated its property laws in January 2026 to open the market more widely to international buyers, making the process more accessible than before. The kingdom now allows foreigners with valid residency permits to purchase residential properties in major cities including Riyadh.

Compared to Western countries, the Riyadh property market requires more government screening and formal approvals. You need to secure residency status first, obtain official permits through digital platforms, and navigate Arabic-language documentation. However, the process is becoming increasingly streamlined with digital applications and clear regulatory frameworks.

The main difference from Western markets is the mandatory government approval process and residency requirement. While countries like the UK or Canada allow non-residents to buy property freely, Saudi Arabia requires buyers to hold an Iqama or Premium Residency permit before purchasing.

Overall, the difficulty level sits between restrictive markets like Singapore and open markets like the United States, with the advantage of competitive pricing and growing investment opportunities in Riyadh's expanding economy.

What types of properties can foreigners legally buy in Saudi Arabia, and are there restrictions on certain areas or property categories?

Foreigners can legally purchase several property types in Saudi Arabia with some important geographical restrictions.

Permitted property types include residential apartments and villas in most Saudi cities including Riyadh, townhouses and compounds that are popular with expat families, commercial buildings and mixed-use developments (though a business license is required to operate), and raw land for development projects requiring a minimum SAR 30 million investment with a five-year completion commitment.

The most significant restrictions apply to religious cities where Mecca and Medina remain largely off-limits for freehold ownership, with only long-term leasing arrangements up to 99 years generally available. Military zones, border areas, and other strategic districts designated by the government are also restricted from foreign ownership.

It's something we develop in our Saudi Arabia property pack.

Property categories are generally open to foreigners in permitted zones, including luxury developments, residential compounds, and commercial real estate. However, certain sensitive areas near government facilities or military installations may require additional clearances or be completely prohibited.

As of September 2025, the regulatory framework continues to evolve, so checking the latest zoning classifications and restrictions with local authorities is essential before making any purchase decisions.

Can buying property in Riyadh give you a path to residency or even citizenship, or is it just an investment right?

Buying property in Riyadh does not provide automatic residency or citizenship - it grants investment rights only.

Property ownership in Saudi Arabia requires you to already hold valid residency status through an Iqama or Premium Residency permit before you can purchase. The ownership itself does not create a pathway to Saudi citizenship, which remains highly restricted and typically limited to exceptional cases.

However, property ownership may support your application for long-term residency status and can demonstrate financial commitment to the kingdom. The Premium Residency program (Golden Visa) offers renewable long-term residency for qualified investors, but property purchase alone doesn't guarantee approval.

Your residency permit allows you to live in and manage your property, generate rental income, and enjoy property appreciation. The investment provides financial benefits and lifestyle advantages but should be viewed as a commercial investment rather than an immigration strategy.

For those seeking residency pathways, exploring business investment visas, employment-based permits, or the Premium Residency program independently of property purchase would be more effective approaches.

What's the exact step-by-step process of purchasing a house in Riyadh from start to finish?

1. **Obtain Residency Status** - Secure an Iqama through employment or Premium Residency through investment. GCC nationals have streamlined access to this requirement.2. **Select and Evaluate Property** - Choose an eligible property in permitted zones, conduct thorough inspections, and verify all legal documentation including title status.3. **Conduct Due Diligence** - Check the Najiz statement from the ownership registry, obtain debt clearance certificates, verify zoning compliance, and confirm property boundaries.4. **Apply for Government Permission** - Submit official permit applications through digital platforms like Absher and Istithlaa, and await approval from REGA and relevant ministries.5. **Negotiate Purchase Terms** - Finalize price, payment terms, and conditions with the seller, often with support from a licensed real estate agent or legal advisor.6. **Arrange Financing** - Complete mortgage applications if needed, or prepare proof of funds documentation for cash purchases including source verification.7. **Execute Purchase Contract** - Sign the official purchase agreement at a Notary Public office, which can be completed via power of attorney if you're not physically present.8. **Complete Registration Process** - Register the property with the Real Estate Authority, pay all required taxes and fees, and finalize the deed transfer.9. **Receive Final Documentation** - Obtain the official title deed and property keys, completing the ownership transfer process.

What documents and approvals are mandatory, and which ones are optional but helpful to have?

The mandatory documentation for property purchase in Riyadh includes specific legal and identity requirements.

Document Type	Mandatory/Optional	Purpose
Valid Iqama or Premium Residency	Mandatory	Legal residency proof
Passport or Saudi ID	Mandatory	Identity verification
Purchase Contract	Mandatory	Legal agreement terms
Debt Clearance Certificate	Mandatory	Financial liability proof
Najiz Statement	Mandatory	Property ownership registry
Employer Income Letter	Optional but Helpful	Financial capacity verification
Power of Attorney	Optional but Helpful	Remote transaction capability

Optional documents that significantly help the process include an employer letter confirming income and moral standing, which strengthens your application, a notarized power of attorney translated into Arabic for remote transactions, and additional property appraisal documents for due diligence purposes.

All documents must be current, properly translated into Arabic where required, and authenticated through appropriate channels. Having complete documentation ready before starting the process can reduce delays and complications significantly.

Do you need to be physically present in Saudi Arabia to complete the purchase, or can you handle everything remotely?

Physical presence is not mandatory for completing a property purchase in Riyadh - the entire process can be handled remotely.

You can complete the purchase remotely by appointing a local lawyer or licensed real estate agent through a notarized power of attorney document. This power of attorney must be properly translated into Arabic and authenticated through Saudi diplomatic missions in your country of residence.

The remote process involves your appointed representative handling property viewings, document submissions, government approvals, contract signings, and final registration on your behalf. Digital platforms like Absher and Istithlaa allow online submission of permit applications and tracking of approval status.

However, some buyers prefer to be present for key milestones such as final property inspection, contract signing, or deed registration to ensure everything meets their expectations. Video calls and virtual property tours can help bridge the gap for remote buyers.

Remote transactions typically take the same timeframe as in-person purchases but require more advance planning for documentation and communication coordination with your local representatives.

How long does the whole process usually take from making an offer to final ownership transfer?

The complete property purchase process in Riyadh typically takes 1-3 months from offer to final ownership transfer.

Fast-track cash purchases with complete documentation can be completed in approximately 1 month, while mortgage-financed transactions often require closer to 2 months due to additional bank approvals and financing arrangements. Complex cases involving commercial properties or development land may extend to 3 months.

The timeline breaks down into several phases: initial due diligence and documentation gathering (1-2 weeks), government approval applications through digital platforms (2-4 weeks), financing arrangements if needed (2-3 weeks for mortgages), and final contract execution and registration (1-2 weeks).

Factors that can extend the timeline include incomplete documentation, delays in government approvals, financing complications, or issues discovered during property inspections. Having all required documents prepared in advance and working with experienced local representatives significantly reduces delays.

As of September 2025, the Saudi government has streamlined many approval processes through digital platforms, making the overall timeline more predictable and efficient compared to previous years.

What are the typical taxes, fees, and extra costs involved in the transaction, and can you break them down clearly?

Property purchase costs in Riyadh typically total 12-15% of the purchase price beyond the property value itself.

The standard 5% real estate transaction tax is the largest single cost, paid to the government upon property transfer. Additional registration, legal, and notary fees typically add another 2-3% of the purchase price for document processing and official registrations.

Agent commissions and notary fees generally range from 1-2% of the property value, while other government fees including permits, approvals, and administrative costs can vary but typically represent 1-3% of the purchase price.

It's something we develop in our Saudi Arabia property pack.

Additional costs may include property surveys, appraisals, legal consultations, and translation services. Cash buyers avoid financing fees but must demonstrate source of funds compliance, while mortgage buyers face additional bank charges and insurance requirements.

Budget approximately 15% above the agreed purchase price to cover all transaction costs, with some variation depending on property type, location, and complexity of the transaction.

Is it possible to buy a house in cash, and if so, are there limits or requirements?

Buying property in Riyadh with cash is possible and often results in faster transaction completion.

Cash purchases are welcomed and can significantly reduce the timeline since you avoid mortgage approval delays and bank documentation requirements. There are no formal upper limits on cash transactions, but larger purchases may face increased scrutiny under anti-money laundering regulations.

The main requirement for cash purchases is demonstrating the legitimate source of funds to satisfy government compliance requirements. You'll need to provide bank statements, income documentation, or other proof showing how you accumulated the purchase funds legally.

Cash buyers still need to complete all standard documentation requirements including residency permits, government approvals, and property registrations. The advantage comes from eliminating mortgage application delays and bank-related complications.

Large cash transactions may trigger additional due diligence from banking authorities, so maintaining clear financial records and working with reputable legal advisors helps ensure smooth processing of your cash purchase.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Saudi Arabia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

Are mortgages available to foreigners, what rates and conditions can you expect, and what are the best tips to secure one?

Mortgages are available to foreigners in Riyadh who meet specific eligibility requirements including valid residency status and income verification.

Foreign buyers need to demonstrate stable income through employment or business ownership, maintain valid Iqama or Premium Residency status, and provide comprehensive financial documentation. Typical mortgage rates are competitive with national averages, though specific rates vary by lender and borrower qualifications.

Banks typically require proof of income, employment contracts, bank statements from the past 6-12 months, debt clearance certificates, and property valuation reports. Down payment requirements usually range from 20-30% of the property value.

Best tips for securing a mortgage include maintaining good credit history, preparing complete documentation in advance, working with banks experienced in foreign lending, getting pre-approval before property hunting, and using reputable real estate agents who understand financing requirements.

Some lenders offer Islamic financing (Sharia-compliant) options which may have different structures but similar practical outcomes. Shopping between multiple banks and comparing terms can help secure better rates and conditions for your specific situation.

Are real estate agents in Riyadh generally reliable, and what precautions should you take when working with them?

Real estate agents in Riyadh are generally reliable, but regulatory supervision is still developing, making due diligence essential.

The market includes many professional, licensed agents who provide valuable services, but the regulatory framework is evolving. Always verify agent credentials and licensing status before engaging their services, and insist on seeing their official registrations from relevant authorities.

Key precautions include demanding comprehensive title checks and property verification, never paying large upfront fees before services are rendered, verifying all property claims independently, and being wary of unlicensed "consultants" or individuals promoting questionable investment schemes.

Work with agents who have established track records, positive client references, and clear professional credentials. Avoid agents who pressure quick decisions, refuse to provide proper documentation, or seem unfamiliar with foreign buyer requirements and legal procedures.

It's something we develop in our Saudi Arabia property pack.

What are the most common mistakes and pitfalls foreigners make when buying in Riyadh, and how can you avoid them?

- **Failing to verify property title and legal status** - Always conduct thorough due diligence including Najiz statement verification and debt clearance confirmation before proceeding with any purchase.- **Underestimating total purchase costs** - Budget for 12-15% additional costs beyond the purchase price including taxes, fees, and commissions to avoid financial surprises.- **Ignoring zoning and district restrictions** - Research area regulations, future development plans, and any restrictions that might affect property use or resale value.- **Working with unregistered agents** - Only engage licensed real estate professionals and verify their credentials to avoid fraud and ensure proper legal representation.- **Overlooking government approval requirements** - Ensure all necessary permits and approvals are obtained, especially for properties in sensitive or restricted districts.

Avoid these pitfalls by engaging registered professionals from the start, keeping all documentation organized and verified, staying updated on the latest regulatory changes, conducting independent property inspections and valuations, and always checking official guidelines before making decisions.

Working with experienced legal advisors, maintaining clear communication with all parties, and taking time for proper due diligence significantly reduces the risk of costly mistakes in Riyadh's evolving property market.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Times of India - Saudi Property Buying Rules
2. Sands of Wealth - Saudi Arabia Process Timeline
3. Middle East Eye - Saudi Arabia Foreign Property Ownership
4. Saudi Gazette - Property Laws Update
5. Sands of Wealth - New Real Estate Law for Foreigners
6. AHYSP - Foreign Property Ownership Transformation
7. YB Case - Real Estate Services Saudi Arabia
8. Sands of Wealth - Saudi Arabia Real Estate for Foreigners