Foreigners Can Finally Own Saudi Homes Starting 2026 Huge Shift

Commercial1 month ago

Saudi Arabia’s property market is undergoing a major transformation. With fresh laws, powerful development projects, and evolving housing dynamics, the kingdom is shaping a new era for real estate. This update breaks down the latest developments in clear, engaging, and SEO-friendly terms.

1. Foreign Ownership Opens Doors (January 2026)

In a historic shift, Saudi Arabia issued Royal Decree No. M/14 in July 2025, setting the stage for foreign individuals, companies, and investment funds to legally own property in designated zones beginning January 21, 2026.

This applies to residential, commercial, and operational properties in key cities like Riyadh and Jeddah. Mecca and Medina remain exceptions under stricter conditions. The law includes safeguards to limit speculation and protect national housing goals.

Why it matters:

Opens a decade-long door to global investors
Builds legal clarity and protection for foreign owners
Aligns with Vision 2030 goals to attract foreign investment and diversify the economy

2. Strong Growth: Prices, Sales, and Ownership Rates

According to the Kuwait Financial Center (Markaz), Saudi Arabia’s real estate market showed strong momentum in early 2025:

A 4.3% increase in the real estate price index year-over-year (YoY)
A 37% jump in property sales YoY
The national real estate market is projected to grow to $101.62 billion by 2029 with an 8% compound annual growth rate (CAGR).

As of 2024, 65.4% of Saudi families now own homes exceeding the 2025 goal of 65% a full year early. The new target: 70% by 2030.

3. Tackling Price and Land Speculation with New Measures

Real estate inflation is rising housing rent climbed 7.6% in June 2025, driven by a 7.1% surge in villa prices, pushing overall inflation to 2.3%.

To help balance the market, the government is offering price-capped residential plots for citizens and enforcing strict new property laws to stabilize supply and demand.

Additionally, a revamped “white land” tax scheme is expanding. Now, Riyadh is divided into four zones with varying fees up to 10% on undeveloped urban land. This aims to curb speculation and promote real construction.

4. Mega-Projects Redrawing the Urban Landscape

Saudi Arabia’s Vision 2030 megaprojects continue to transform its cities and tourism offerings:

New Murabba in Riyadh: A massive “downtown” development featuring the iconic Mukaab cuboid skyscraper, to include cultural venues, a tech university, green spaces, and indoor city zones slated for completion by 2030.
The Red Sea Project: A luxury island resort development that has opened overwater villas on Sheybarah Island and Ummahat Islands. Recognized in Time’s “World’s Greatest Places of 2025.
Soudah Peaks: A $7.7 billion mountain tourism resort in Asir, set to generate over $7.8 billion to GDP by 2033 and attract over 2 million visitors annually.

These projects not only boost supply but also elevate Saudi Arabia’s appeal to tourists, investors, and aspirational residents.

5. Tech Enhances Real Estate Management

Modern technology is being adopted by leading developers. Al Khozama Investment Company, known for managing Al Faisaliah Tower in Riyadh, has partnered with Yardi’s cloud-based Commercial Suite. This will streamline lease and financial operations, improve tenant services, and support smarter strategic planning.

Final Thoughts

Saudi Arabia’s property market is entering a defining era. The combination of new ownership laws, mega-projects, and stronger regulations shows that the Kingdom is balancing growth with stability. On one hand, foreign investors now have a clearer path to enter the market, opening up billions in potential capital inflow. On the other, tighter land-use rules and capped housing initiatives demonstrate that affordability and citizen needs remain a top priority.

With homeownership already surpassing government goals, landmark developments reshaping the urban landscape, and technology streamlining operations, Saudi Arabia is positioning itself as one of the most dynamic real estate markets in the world. For buyers, investors, and developers, the message is clear: the Kingdom’s property sector is no longer just about building homes it’s about building the future.