Authored by the expert who managed and guided the team behind the Saudi Arabia Property Pack
Everything you need to know before buying real estate is included in our Saudi Arabia Property Pack
Why is Saudi Arabia emerging as a prime destination for property investment in 2025? Is it the ambitious Vision 2030 initiatives, the rapid urban development, or the strategic location bridging three continents? What are the key advantages for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Saudi Arabia's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
How this content was created 🔎📝
1) With the expanding mortgage market, it’s easier to get financing in Saudi Arabia
The Saudi mortgage market is on the rise, making it easier for people to get financing.
In 2024, there was an 18% increase in new mortgage approvals compared to the previous year. This surge was particularly noticeable in March and April, when a large number of new residential mortgages were sold. This trend indicates a growing confidence in the housing market and a strong demand for homeownership.
The government is also playing a big role in this expansion. They have set an ambitious target to boost homeownership among Saudi citizens to 70% by 2030. By the end of 2023, the percentage of Saudi households owning a home had already reached 63.74%. This shows a significant leap from previous years, reflecting the effectiveness of government initiatives.
Banks are introducing new mortgage products, including sharia-compliant options, which cater to various financial needs and preferences. This diversity in mortgage products makes it easier for more people to find financing that suits their situation. The availability of these options is a game-changer for many potential homeowners.
Moreover, the number of financial institutions offering mortgages is growing, which further enhances accessibility. This increase in competition among banks and financial institutions is beneficial for consumers, as it often leads to better terms and conditions for borrowers.
Sources: AGBI, Arab News, Arab MLS
2) Foreign investors now have new market opportunities with the introduction of property ownership rights
The introduction of property ownership rights for foreign investors opens new market opportunities in Saudi Arabia.
In 2023, foreign direct investment in Saudi Arabia grew significantly, reaching SAR 72 billion, marking a 12% increase from the previous year. This surge shows a growing interest from international investors eager to take advantage of these new ownership rights. The real estate sector, in particular, has become a hot spot for foreign investment.
By 2024, the real estate market experienced a remarkable boom, with transactions increasing by 38% in the first half of the year, totaling $34 billion. This growth was largely fueled by foreign investors, especially in Riyadh, where residential transaction volumes jumped by 49%, outpacing other major cities like Jeddah and Dammam. The demand for luxury properties also saw a rise, thanks in part to the Premium Residency Visa, which allows foreigners to own real estate worth over SAR 4 million.
Saudi Arabia's Vision 2030 has been instrumental in attracting foreign investment. The new Investment Law 2024 is designed to boost global rankings and draw more foreign investors, aligning with the country's broader economic diversification goals. Mega projects like NEOM and the Red Sea Project have caught the attention of international investors, leading to innovative real estate developments.
These government initiatives are not just about numbers; they are reshaping the landscape of Saudi real estate. The focus is on creating a vibrant, diversified economy that appeals to global investors. The introduction of property ownership rights for foreigners is a key part of this strategy, offering new opportunities for those looking to invest in a rapidly evolving market.
Sources: Arab News, RFF Reports, Global Business Outlook, Linklaters, Consultancy ME
We have made this infographic to give you a quick and clear snapshot of the property market in Saudi Arabia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Saudi Arabia’s growing international business scene means more people are looking for homes
International business operations in Saudi Arabia are driving up housing demand.
Since 2024, Saudi Arabia has required foreign companies to establish regional headquarters within its borders to secure government contracts. This policy has led to a noticeable increase in office setups, especially in Riyadh, where many international firms are now setting up shop. As a result, the city is buzzing with new business activities, creating a vibrant environment for potential property buyers.
With more companies moving in, there's been a surge in work visas for expatriates. The Saudi government is keen on attracting foreign talent to bolster its non-oil sectors, which means more people are coming in and looking for homes. This influx of professionals is a golden opportunity for those considering investing in the housing market.
Economic cities like NEOM and King Abdullah Economic City are also becoming hotspots for businesses and professionals. These areas are not just about futuristic projects; they are actively drawing in companies and skilled workers, which in turn is pushing up the demand for housing. If you're eyeing property in these regions, you're tapping into a growing market.
Real estate reports highlight a rise in demand for rental properties in major cities like Riyadh and Jeddah. This trend is directly linked to the influx of international businesses and expatriates. For property investors, this means a steady stream of potential tenants, making it a lucrative venture.
In Riyadh, the real estate market is particularly dynamic, with new developments and infrastructure projects underway. This growth is not just about numbers; it's about creating a thriving urban landscape that appeals to both businesses and residents. If you're considering buying property, Riyadh offers a promising landscape for investment.
Sources: The Media Line, Arab News, Deloitte
4) With a focus on digital transformation, the government makes real estate transactions more efficient
The Saudi government is making real estate transactions much smoother with its focus on digital transformation.
In recent years, the adoption of blockchain technology has been a game-changer. This tech ensures that property records are both transparent and tamper-proof, which means you can trust the integrity of your property dealings. It's like having a digital lock on your property records, making them secure and reliable.
Another big leap forward is the introduction of e-government services like the Ejar Platform. This platform has revolutionized the rental process by using unified electronic contracts. These contracts are authenticated, which means fewer disputes and less work for the courts. By 2025, the platform had documented around seven million rental contracts, highlighting its efficiency.
The government's push for digital infrastructure is also attracting investments in PropTech startups. These startups are bringing fresh, innovative solutions that boost operational efficiency and sustainability in the real estate sector. It's a win-win for everyone involved, from investors to homebuyers.
Moreover, the government's commitment to digital transformation is clear with the enactment of over 18 pieces of legislation. These laws are designed to create a welcoming environment for international investment and collaboration, making Saudi Arabia a hotspot for real estate opportunities.
Sources: SSRN, Saudipedia, Arab News
5) Vision 2030 is diversifying the economy, which boosts housing demand
Saudi Arabia's Vision 2030 is all about diversifying the economy and moving away from oil dependency.
With this plan, the government is pouring money into infrastructure and urban development, creating new cities like NEOM and the Red Sea Project. These projects are set to boost demand for housing and commercial spaces.
By 2030, nearly 97.6% of Saudis will live in urban areas, thanks to rapid urbanization. This shift is pushing up the need for more homes, especially with the Iskan program aiming for a 70% homeownership rate among citizens.
Foreign investors are also jumping in, with international investment in real estate growing over 50% since Vision 2030 kicked off. The relaxed rules now let them own property without a local partner, making the market even more attractive.
There's a massive $1 trillion being funneled into real estate and infrastructure, which is expected to create a huge demand for residential and commercial properties. This is a golden opportunity for anyone looking to invest in Saudi real estate.
Sources: Arab News, UN Habitat, Global Business Outlook, S&P Global
Get to know the market before you buy a property in Saudi Arabia
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
6) With tourism on the rise, especially religious tourism, you can easily rent out your property short-term
Saudi Arabia's booming tourism sector is opening up exciting opportunities for short-term rentals.
In 2023, the country saw a whopping 109 million visitors, with 27 million of them coming from abroad. This influx is creating a huge demand for places to stay, especially short-term rentals. The Hajj pilgrimage is a big part of this, with its own growth rate of 7.20% annually expected from 2024 to 2034. During peak times like Hajj and Umrah, short-term rentals in Mecca and Medina are in high demand, thanks to the millions of pilgrims flocking to these holy cities.
New tourist visas are making it easier for international travelers to visit, which is further boosting the tourism scene. This ease of access is not just attracting more tourists but also fueling the rise of short-term rental platforms like Airbnb. As more people visit, the need for flexible accommodation options grows, and this trend is likely to continue as Saudi Arabia's tourism industry expands.
For those considering investing in property, this is a golden opportunity. The demand for short-term rentals is not just a passing phase; it's a growing market driven by both religious and leisure tourism. With the government's push to diversify the economy, tourism is becoming a key player, and short-term rentals are a big part of that picture.
Imagine owning a property in a place where millions visit every year, not just for religious reasons but also for leisure and business. The potential for rental income is significant, especially during peak seasons. As Saudi Arabia continues to open its doors to the world, the opportunities for property investors are expanding.
So, if you're thinking about buying property in Saudi Arabia, now might be the perfect time to tap into this thriving market. With the tourism sector on the rise, short-term rentals offer a promising avenue for investment.
Sources: Moodie Davitt Report, Future Market Insights, Skift
7) First-time homebuyers get government incentives, boosting the market
The Saudi government is making it easier for first-time buyers to own homes.
They've increased funding for housing projects, and one standout initiative is the Saudi Real Estate Development Fund's Dhamanat. This firm, with SAR18 billion in capital, offers mortgage guarantees, making it easier for nationals to secure loans. It's a big push to boost homeownership among Saudis.
Another major effort is the Sakani initiative, which kicked off in 2018. By mid-2024, Sakani had helped over 1 million families, with an 8% rise in the number of families supported. This means 55,000 Saudi families have benefited from its housing programs, showing a strong commitment to first-time buyers.
Low-interest loans backed by the government are also on the table, making home buying more affordable. The Sakani program alone issued over 27,000 subsidized mortgage loans in the first half of 2024. This is part of a larger plan to increase homeownership, especially among young Saudis.
These efforts are not just about numbers; they're about creating opportunities. The government is keen on making homeownership a reality for more people, and these programs are a testament to that. The market is buzzing with activity, thanks to these initiatives.
For those considering buying property in Saudi Arabia, now might be a good time. The government's incentives are making it an attractive option, and the market is ripe with possibilities.
Sources: AGBI, Oxford Business Group, Vision 2030
8) Saudi Arabia’s young population means there’s a growing need for new housing developments
Saudi Arabia's youthful population is a major force behind the growing demand for new homes.
In 2023, a striking 37% of Saudis were under 25, with many even younger. This youthful crowd is flocking to cities, eager to start families and settle down. Urban areas are buzzing with activity as these young families look for places to call home.
City life is becoming the norm, with urban growth at a brisk 3.6% annually. This shift means more people are leaving rural areas for the city lights, pushing up the need for housing in bustling urban centers.
The government is stepping in with initiatives like the Sakani program, part of Vision 2030, aiming to boost home ownership to 70% by 2030. They're making it easier for young Saudis to buy homes by improving access to finance and offering more housing options.
Mortgage options are expanding, making it more feasible for young people to own homes. This financial support is a game-changer, driving up demand for new housing developments as more young Saudis see home ownership as within reach.
Sources: Global Media Insight, Trading Economics, PwC
We made this infographic to show you how property prices in Saudi Arabia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Mixed-use developments are on the rise, giving you diverse investment opportunities
Mixed-use developments are becoming hot investment spots.
In bustling urban areas, there's a noticeable shift towards these developments. Take the Hassana-Kinan project in Riyadh, for example. It's set to offer 9,000 modern homes along with schools, hospitals, and entertainment hubs. This aligns perfectly with Saudi Vision 2030, which aims to enhance living standards and meet the growing demand for quality housing.
The Saudi government is throwing its weight behind these projects. Through initiatives like the 'Shareek' program, they're not just diversifying the economy but also creating thousands of jobs. This kind of support makes mixed-use developments a magnet for investors looking for stable opportunities.
Investors are also drawn to the higher rental yields that mixed-use properties typically offer. With a mix of amenities and services, these properties attract both local and international interest. The introduction of REITs has opened the doors even wider for foreign investors, making the Saudi real estate market more appealing than ever.
Sources: Big 5 Construct Saudi, Tamimi, Gulf Construction Online
10) Saudi Arabia’s infrastructure investments are driving up property values
The Saudi government is pouring money into infrastructure, boosting property values significantly.
At the heart of this surge is the Vision 2030 initiative, a plan to diversify the economy and promote urban growth. This includes massive projects like NEOM and the Red Sea Project, which are driving up demand for both residential and commercial properties. NEOM, a futuristic city in the making, is a $500 billion endeavor in the northwest, promising to transform the region with cutting-edge infrastructure and technology.
The Red Sea Project is another game-changer, focusing on tourism with plans to open 16 hotels and thousands of housing units. This development is not just about luxury; it's a magnet for foreign investment, which in turn is pushing property values higher. The ripple effect of these projects is felt across the real estate market, making it a hot spot for potential buyers.
Public transportation is also getting a major upgrade. The Riyadh Metro, part of Vision 2030, aims to enhance city connectivity, which naturally increases property values in key areas. Improved transport means easier commutes and more attractive living conditions, drawing more people to these urban centers.
Beyond metros, new airports and seaports are in the works, further boosting the appeal of Saudi cities. These developments are making the country more accessible, which is a big plus for property values. As connectivity improves, so does the attractiveness of investing in Saudi real estate.
With all these changes, Saudi Arabia is becoming a prime location for property investment. The government's focus on infrastructure is not just about building; it's about creating a thriving environment that supports economic growth and enhances living standards.
Sources: Saudi Build, Assetsoft, Business Wire
11) With long-term residency visas, more expats are looking to buy property
The introduction of long-term residency visas in Saudi Arabia has significantly expanded the potential buyer pool for real estate.
In January 2024, Saudi Arabia broadened its Premium Residency Permit (PRP) scheme, making it easier for expatriates to consider long-term investments like buying property. This change allows a wider range of foreign nationals to obtain self-sponsored long-term residency permits, opening doors for those looking to settle down.
Saudi Arabia's population is expected to hit 37.47 million by 2024, with a notable influx of expatriates. Riyadh, in particular, is projected to see its expatriate population grow by 1.85 million by 2030. This surge is likely to drive housing demand, with an estimated need for 305,000 additional housing units for both locals and expatriates over the next decade.
Surveys show a strong interest in property ownership among expatriates. For example, a survey by Envoy Global found that 66% of workers with a Golden Visa have higher retention rates, indicating a preference for long-term residency and potential property investment. This aligns with Saudi Arabia's Vision 2030, which encourages foreign investment in real estate as part of its economic diversification strategy.
Riyadh's real estate market is buzzing with activity, partly due to these new residency options. The city's skyline is rapidly changing, with new developments catering to the growing number of expatriates. This trend is not just about numbers; it's about creating a vibrant community where people from all over the world can find a home.
For those considering a move, the combination of long-term residency options and a booming real estate market makes Saudi Arabia an attractive destination. The government's efforts to diversify the economy and promote foreign investment are creating opportunities for expatriates to become part of the country's future.
Sources: Fragomen, Arab News, Envoy Global
Buying real estate in Saudi Arabiacan be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
12) The government's focus on sustainability boosts long-term property value
The government is focusing on sustainable development to boost property values in the long run.
One of the standout projects is the creation of smart cities like NEOM, a key part of Saudi Arabia's Vision 2030. These cities are designed to be futuristic, using advanced technologies and sustainable practices to set a new benchmark for urban living. Imagine a city where everything is connected and efficient, from transportation to energy use.
There's also a big push towards green building projects. Saudi Arabia has already registered 2,000 green building projects, and this number is expected to skyrocket. By 2030, the market could hit $33.0 billion, driven by a growing demand for energy-efficient buildings and eco-friendly materials. This means more homes and offices that are not just modern but also kind to the planet.
Energy efficiency is another area getting attention. The government has rolled out regulations that require residential buildings to meet certain standards. This includes guidelines for thermal insulation and other energy-saving measures, making homes more sustainable and cheaper to run in the long term.
Property valuation is also evolving. Now, properties are assessed not just for their economic value but also for their environmental and social impact. This new approach aligns with the projected growth of Saudi Arabia's real estate market, which is set to expand with major investments in sustainable infrastructure.
Sources: Landvault, Arab News, Wealth Consulting
13) Smart cities like NEOM are drawing global interest and investment
Smart cities like NEOM in Saudi Arabia are grabbing global attention for their innovative approach and massive scale.
One of the main attractions is the huge foreign direct investment (FDI) pouring into these projects. By 2025, NEOM is expected to see nearly $50 billion in investments, which shows just how appealing these initiatives are to international investors. This influx of money is not just about numbers; it's about the confidence investors have in the potential of smart cities to revolutionize urban living.
Government backing is another big reason why NEOM is in the spotlight. The Saudi government has pumped significant funds into developing infrastructure, like the NEOM Bay Airport, and has signed contracts for building residential areas and green hydrogen facilities. This level of investment demonstrates the government's commitment to turning NEOM from a vision into a reality.
NEOM isn't going it alone; it's teaming up with top global firms to bring in expertise in sustainability and complex infrastructure. These partnerships are essential for overcoming the challenges of building a smart city from scratch. Collaborations with global experts have drawn worldwide attention, as they are crucial for ensuring that NEOM is not just a concept but a functioning, sustainable city.
For those considering buying property in the country, NEOM represents a unique opportunity. The development is not just about technology and infrastructure; it's about creating a new way of living that prioritizes sustainability and innovation. Investing in NEOM could mean being part of a groundbreaking community that sets the standard for future urban developments.
As NEOM continues to evolve, it stands as a testament to what can be achieved with the right mix of investment, government support, and global collaboration. The project is a beacon for those looking to invest in the future of urban living, offering a glimpse into what cities of tomorrow might look like. NEOM's progress is closely watched by investors and urban planners worldwide, eager to see how this ambitious project unfolds.
Sources: Saudi Visa Office, Saudipedia, Smart Cities Saudi Expo
14) With more schools opening, there’s a growing need for student and faculty housing
The growth of educational institutions in Saudi Arabia is reshaping the housing market.
By 2030, Saudi Arabia is expected to need 2.75 million higher education places, a significant jump from 2022. This surge means more students are looking for places to live, especially near their universities. In 2023, public universities saw around 779,000 students enrolling, while private ones had about 44,000. This increase in student numbers is driving up the demand for housing close to campuses.
The Saudi government is backing this educational boom with substantial investments. They've earmarked SR201 billion for the education sector in 2025, which not only boosts educational facilities but also opens doors for private developers to create housing for students and faculty. This financial push is a golden opportunity for those looking to invest in real estate.
New educational cities and campuses are popping up, some even joining UNESCO’s Network of Learning Cities. These developments are designed to foster inclusive learning environments, attracting more students and faculty. Naturally, this means a growing need for nearby housing options.
For potential property buyers, this expansion is a signal. The demand for student and faculty housing is on the rise, and investing in properties near these educational hubs could be a smart move. The government's focus on education is not just about building schools; it's about creating entire ecosystems that support learning and living.
Sources: Arab News, AGBI, Argaam Plus
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.