Market Reports · Saudi Arabia
2026 · M/14 in force · Vision 2030

Saudi Arabia Market Report

A market that just opened to foreign ownership for the first time in decades. Vision 2030 capital, Vision 2030 timing — and yields among the world's highest.

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SAR 2.1M
Avg Riyadh property
↑ 5% YoY
8.89%
Riyadh gross yield
↑ Q1 2026
7.34%
National avg yield
↑ Q3 2025
$1T+
Vision 2030 pipeline
↑ accelerating
📜

What changed on 22 January 2026

Royal Decree M/14 — Law of Real Estate Ownership by Non-Saudis entered into force, replacing the restrictive 2000 framework. Foreigners can now own residential, commercial, mixed-use, and agricultural property within REGA-designated zones. Tokenized fractional ownership is officially recognized. Makkah/Madinah have a separate framework with limited routes for Muslim foreigners and CMA-licensed funds.

Headline numbers

A market in structural transformation

Saudi Arabia's property market combines emerging-market dynamics with sovereign-backed infrastructure spending at a scale unmatched globally. Q1 2025 housing transactions hit $29B, up 37% year-on-year.

SAR 800K
National median home
~$213K
SAR 5,100
Riyadh median /sqm
+5% YoY
340K
New Riyadh homes by 2030
ROSHN-led
600+
Intl HQs in Riyadh
target hit early
$30B
FDI 2024
↑ trending
0%
Personal income tax
incl. rental
By city

Where the yield is

Riyadh leads on yield, capital growth, and corporate-driven rental demand. Jeddah follows with Red Sea positioning and Jeddah Central regeneration. Eastern Province (Dammam) is the industrial play. Makkah/Madinah remain restricted for non-Muslim foreigners.

Riyadh
8.89% yieldSAR 5,100/sqm
Jeddah
7.89% yieldSAR 3,083/sqm
Dammam (East)
7.2% yieldSAR 2,800/sqm
Khobar
6.8% yieldSAR 3,200/sqm
Riyadh — Al Olaya
6.5% yieldSAR 7,100/sqm
Riyadh — Al Malqa
6.0% yieldSAR 7,900/sqm
Riyadh — Al Sahafah
5.5% yieldSAR 9,500/sqm
Diriyah Gate (premium)
3.8% yieldpremium tier
NEOM (curated)
long-termcapital growth play
Entry points

Where you can start at SAR 700K

Saudi remains comparatively affordable vs Dubai for similar quality. Mid-tier Riyadh apartments and Jeddah waterfront entry-level units offer best risk-adjusted returns under M/14.

Jeddah — Al Shati / Corniche
2-bed apartment
SAR 700K – 1.1M
Yields 7-8% · Red Sea Project halo
Riyadh — An Narjis
2-bed apartment
SAR 950K – 1.4M
Yields 6.5-7.5% · expanding northern districts
Riyadh — Al Olaya
2-bed apartment
SAR 1.2M – 1.8M
Yields 6-7% · KAFD-adjacent corporate demand
Dammam Corniche
2-bed apartment
SAR 600K – 950K
Yields 7-8% · Aramco-corridor expat demand
Riyadh — Al Sahafah
3-bed villa
SAR 1.8M – 2.5M
Yields 5-5.5% · family premium new-build
Khobar — Al Aziziyah
2-bed apartment
SAR 700K – 1.0M
Yields 6.5-7% · Eastern Province corporate
Costs to know

Saudi tax & transaction costs

Saudi has one of the lowest holding-cost regimes globally — no annual property tax, no personal income tax on rentals. Transaction costs concentrate at purchase. Buyers typically negotiate ~6% off list; new-builds carry a ~12% premium over existing stock.

CostRate / amountWhenNotes
Real Estate Transaction Tax (RETT)5%On saleReplaced VAT on real estate transactions in 2020. Paid by buyer.
Foreign buyer registration fee (MoHUP equivalent)~3%On registrationHigher than Saudi-national rate. Confirm with REGA at point of transaction.
Mortgage registration fee0.5%On mortgage originationCapped 2025 reform.
Title deed (ownership) registrationSAR 100-500On registrationNotary / Saudi Properties digital platform.
Real estate broker commission~2.5%On purchaseNegotiable. Sometimes split.
VAT on commercial rents15%Monthly (commercial only)Residential rent is VAT-exempt.
Income tax on rental income0%—No personal income tax in Saudi Arabia for individuals.
Annual property tax0%—No annual property tax. White Land Tax (up to 10%) only applies to undeveloped urban plots.
Capital gains tax (individuals)0%—Individual real estate gains untaxed. Companies subject to corporate income tax.
2026 trends

What's moving the Saudi market

Eight structural forces shaping Saudi property investment over the next 24 months.

📜

M/14 — foreign ownership unlocked

Royal Decree M/14 in force since 22 Jan 2026. First time in modern history that foreign individuals can directly own Saudi property in residential/commercial/mixed/agricultural categories within designated zones.

Structural
🧊

Riyadh 5-year rent freeze

Crown Prince enacted September 2025 — caps rent increases on residential and commercial leases until September 2030. New leases set initial rent freely, then frozen. Capital growth focus over rental escalation.

Active
🏗️

ROSHN delivery

PIF-backed national developer targeting 340,000 new Riyadh homes by 2030. 2030 target for 70% Saudi home ownership. Largest single-country residential build in history.

Accelerating
💼

RHQ programme — 600+ international HQs

Riyadh Regional Headquarters target exceeded ahead of schedule. Drives premium residential demand from C-suite expat relocations. Diplomatic Quarter and Al Olaya benefit most.

Mature
🪙

Tokenized fractional ownership

M/14 explicitly recognizes digital fractional ownership. Investors abroad can hold tokenized stakes without physical visit. CMA-licensed structures gaining traction.

Emerging
🏟️

2034 FIFA World Cup + Expo 2030

Two mega-events anchoring infrastructure pipeline. 30,000+ new hotel rooms, expanded transport, dedicated tournament districts. Pre-event price uplift typical 8-15%.

2027-2034
🌅

NEOM, Red Sea, Diriyah, Qiddiya

$1T+ mega-project pipeline. NEOM's The Line, Trojena (2029 Asian Winter Games), Sindalah luxury island. Diriyah Gate $63B over 14 sqkm. New Murabba 19sqkm world's largest downtown.

Long horizon
📊

Mortgage market expansion

Mortgage lending hit SAR 846B (~$226B), expanding under fixed-rate products and reduced registration fees. Foreign buyer mortgage routes opening through Saudi banks for expat residents.

Growing
Common questions

Foreign buyer FAQ

Can foreigners actually own property in Saudi Arabia now?
Yes — directly, since 22 January 2026. The Law of Real Estate Ownership by Non-Saudis (Royal Decree M/14) replaced the 2000 framework. Foreign individuals, foreign-incorporated companies, and Saudi companies with foreign shareholders can register property ownership in REGA-designated zones. The previous "Premium Residency required" route is no longer the only path.
Where exactly can I buy?
REGA publishes the "Geographic Scope Document" — initial implementation focuses on parts of Riyadh, Jeddah, Dammam, and Vision 2030 mega-project zones (NEOM, Red Sea Global, Qiddiya, Diriyah). Outside designated zones, foreign ownership is generally not permitted. Makkah and Madinah have a separate, more restrictive framework: Muslim foreigners under specific conditions, plus CMA-licensed funds and limited corporate routes.
What yields can I realistically expect?
Saudi delivered a 7.34% national gross yield in Q3 2025 — among the highest in the region. Riyadh leads at 8.89% gross in Q1 2026, Jeddah at 7.89%. After the 5-year Riyadh rent freeze, growth in existing leases is capped until September 2030, but initial rents on new leases remain market-set. Net yield (after agent, maintenance, voids) typically runs 30-40% lower than gross.
What does the Riyadh rent freeze actually mean for me?
Properties leased for the first time can set initial rents freely, then those rents are locked until September 2030. For existing tenants, no annual increases until that date. So Riyadh tilts toward capital-growth investors over income investors during the freeze period. Outside Riyadh, no rent freeze applies — Jeddah, Dammam, and Khobar offer freer rental markets.
Is there income tax on rental income?
No. Saudi Arabia has no personal income tax on individuals — including rental income. The 15% VAT applies to commercial rents only; residential rents are VAT-exempt. There is no annual property tax (only the White Land Tax on undeveloped urban plots, up to 10%, designed to discourage speculation).
Can I get a Saudi mortgage as a foreigner?
Mortgage availability is expanding under M/14. Saudi banks offer products to expat residents typically requiring 25-35% deposit. Non-resident foreign buyers usually pay cash for now, though banks are developing non-resident products in 2026. Tokenized fractional ownership has emerged as the alternative for smaller-ticket entry without mortgage.
What about NEOM and the mega-projects?
NEOM ($500B+) is approached selectively for qualified investors. Sub-projects: The Line (linear city), Trojena (mountain resort, hosting 2029 Asian Winter Games), Sindalah (luxury island). Diriyah Gate ($63B), New Murabba (19 sqkm), Qiddiya (entertainment), Red Sea Global (tourism). Time horizons are 5-15 years; these are long-term capital plays, not yield plays. Roya provides curated advisory access.
Should I move on M/14 now or wait?
First-mover advantages are real but should be weighed against execution risk. Foreign demand pre-existed the law (Saudis estimate Arab/Gulf investors at 15-20% of early transactions), and analysts forecast $20-25B in foreign property investment by 2030. Riyadh prices have risen 81% since the pandemic and 5% nominal in the 12 months to early 2026. The structural argument is strong, but stock selection within designated zones matters more than timing. Roya International introduces vetted local partners for due diligence.

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