Jun 26, 2023
Terms for Selling and Buying Real Estate in Saudi Arabia
Before you commence on any real estate transaction, whether buying or selling, you must familiarize yourself with the laws governing real estate in KSA, as these laws were put in place to guarantee the rights of all the transaction parties, both the seller and the buyer, by detailing the rights and duties of each of them, as well as ensuring the housing eligibility of the property itself.
These laws represent a set of rules governing real estate transactions and everything related to them in the Kingdom of Saudi Arabia, including:
Principles of owning and sorting real estate units.
Provisions governing non-Saudi ownership and investment in real estate.
Conditions of real estate ownership for GCC citizens.
Sorting real estate units
Real estate units are sorted according to the approved national identity of the property, and according to the serial number allocated to it within the forms approved by the Real Estate General Authority.
In order to complete the sorting process, several types of information are required, including the legal or formal title deed, the property information, licenses and authorization, whether it is joint or not, in addition to the cadastral report licensed by the engineering office and approved by the Real Estate General Authority. Also, if the property is under mortgage, the mortgagee’s consent must be secured as well. Of course, all of this must be accompanied by the approval of the community, the owners’ association, or each of the owners.
If the property has been previously sorted, the consent of the previously sorted property owner, or a proof of it, will also be required if the property re-sorting process leads to any change in the ratio of the common parts or the common land area of the sorted property.
After fulfilling these procedures, the sorting or re-sorting request is submitted to the authority to be considered, and to issue the approval document, if approved, which includes all data related to the property and the type of sorting or re-sorting process.
Foreigners’ ownership in the Kingdom of Saudi Arabia
Legal residents of the Kingdom of Saudi Arabia, of any nationality, have the right to own real estate in the Kingdom, as long as they adhere to certain legal standards that have been developed to demonstrate the residents' illegibility to own a property, their rights and duties.
- First, foreigners can own real estate provided they have legal residency in the Kingdom.
- Secondly, foreigners may own the property for the purpose of personal residence, or may rent it as a personal residence, after obtaining a permit from the Ministry of Interior.
This applies to all real estate in Saudi Arabia, except for Makkah and Medina, being subjected to their own set of laws.
Terms of foreigners’ ownership or leasing of real estate units located in Makkah and Medina
Generally, it is not allowed to own or rent Makkah and Medina real estate to foreigners or even non-Saudi establishments, except for the following:
After the amendment implemented on the ownership and investment system for real estate by non-Saudis (pursuant to Royal Decree No. (M / 94) dated 9/15/1439 AH), non-Saudi institutions (whether Gulf-originated or otherwise) may own or rent properties within Makkah or Medina, provided that it falls under the following exemptions:
Banks and real estate finance companies licensed by the Saudi Arabian Monetary Agency (“SAMA”), provided that their acquisition of the property is for the purpose of financing Saudi citizens, their offices or branches, or for carrying out their activities in accordance with the regulations set by the Saudi Arabian Monetary Agency.
Listed companies that do not engage in real estate activities, provided that the property is fully allocated to their offices or branches, or to carry out their activities in accordance with the rules defined by the Capital Market Authority (“CMA”), or other entities determined by the Council of Ministers.
As for holders of the Saudi Premium Residency, according to the regulations corresponding to Article 2, non-Saudi citizens who own Premium Residency may obtain a usufruct right over properties adjacent to Makkah and Medina for 99-year period of time.
As for the regulations governing property ownership by non-Saudi nationals in the Kingdom, it stipulates the following:
1- Allowing foreigner residents to own properties for the sole reason of residence. Also, he must obtain a license from the Ministry of Interior, and his request must be subjected to certain conditions, namely:
- He must have a valid residence permit, and its validity must not be expired.
- He must also provide all information about the property.
In addition, a copy of the title deed must be provided.
If a resident is allowed to own a property, he can own only one property.
- Of course, the non-Saudis resident applying to own a property must have a clean record and must not be wanted to justice.
2- If the property is designated for investment, the cost of the project land plot must not be less than 30 million SAR, and the Council of Ministers has the right to amend this amount when it deems it appropriate. Also, it is required that the investment process takes place within 5 years of obtaining the ownership.
3- As for foreign entities, international and regional institutions, in addition to the aforementioned regulations, they are required to obtain a license from the Minister of Foreign Affairs, in accordance with the reciprocity principle in foreign transactions.
The rules governing property ownership by GCC citizens in KSA:
1- GCC citizens are more privileged when it comes to property ownership in KSA, as they are allowed to own up to three properties in residential areas, provided that the area of the property does not exceed 3,000 sqm. However, the competent authorities have the right to allow the ownership of more than three properties if they deem it appropriate.
2- GCC citizens are allowed to own property for residential purposes, either for the owner or his family, but they do not have the right to use any of their properties otherwise, unless permitted by the laws of the country.
3- GCC citizens licensed to practice various economic crafts and activities which are authorized to be carried out, now or in the future within GCC, are allowed to own properties.
4- GCC citizens, who meet the basic prerequisites, are allowed to rent and use the land. They also retain the freedom to dispose of this right by selling and mortgaging in accordance with what is required by the laws of the Kingdom.
5- As for the properties located within the borders of Makkah and Medina, they are excluded from the provisions listed here.
6- These provisions do not, in any way, fall into conflict with the state's right to expropriate the property for the public interest, in return for fair compensation for the owner according to the applicable laws.
Conditions for GCC citizens’ ownership of property in Saudi Arabia:
1- The purpose of ownership must be residential for the owner or his family, and he is not entitled to use the property otherwise, unless the state laws permit that.
2- If the property is a land plot, the owner must start the construction operations within the limits of three years from the date of registering the ownership, and the construction must be completed within five years from this date. Exceeding this period may expose the property to confiscation and sale, (in this case the owner will be compensated if there proved to be a compelling reason for the delay in construction).
3- The property owner is not entitled to transfer its ownership until four years have passed from the date of its registration to his name. Some exceptions may be made if the owner obtains prior permission from the competent authorities.
4- As for GCC citizens licensed to practice various economic crafts and activities which are authorized to be carried out, now or in the future, within GCC, they are allowed to own properties according to the following conditions:
1- That the property be allocated for the practice of the permitted and licensed profession, craft, or activity.
2- That the property area size be compatible with the requirements of the profession, craft, or activity the owner wishes to practice, as determined by the competent authority in KSA.
3- Not to dispose of the property by transferring its ownership, except after quitting the profession, craft, or activity for which they basically purchased the property, or if they change their place of work.
To read more blogs on real estate related topics, go to the Related Blogs section at Mada Properties.
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August 27, 2026
Mortgage lending in Saudi Arabia operates inside a defined regulatory framework set by the Saudi Central Bank (SAMA), with each lender layering its own credit policy on top. The practical consequence is that eligibility, and the amount you can borrow, are not a verdict handed down at the branch. They are figures you can work out in advance.
That matters, because most property purchases in Riyadh today are financed over fifteen years or more, and the size of the financing available is what sets the range you can realistically shop in, not the other way round.
Real estate financing is an amount advanced by a bank or a finance company licensed by SAMA to buy a residential property, repaid in monthly instalments that typically run from fifteen to thirty years. The property is registered as security in the lender’s favour until the balance is settled in full.
One point of terminology worth clearing up early: in the Saudi market, "home loan," "mortgage" and "real estate financing" all describe the same thing. The meaningful difference is structural, most products offered in the Kingdom are built on Sharia-compliant contracts rather than interest-bearing lending, which is why you will see profit rates quoted rather than interest rates.
The contract structure varies between lenders. Three are common:
The difference between these is not just nomenclature. It affects when title passes to you, how early settlement is treated, and how insurance is handled. Ask which structure applies to your offer before you sign, not after.
Requirements are broadly consistent across lenders in the Kingdom; what varies are the thresholds:
Four of these decide the outcome more than the rest. They are worth taking in turn.
A complete, internally consistent file shortens the assessment and reduces the chance of rejection. Most lenders ask for:
Check that the details match across documents. A salary figure or employer name that reads differently on the salary certificate than on the bank statement is a routine cause of delay.
The Sakani programme, delivered with the Real Estate Development Fund (REDF), provides support to eligible Saudi nationals, including coverage of part of the profit margin up to a defined financing ceiling. General eligibility conditions:
The financing track adds further conditions: a minimum monthly income, a defined age band, the property being your first home, and an acceptable credit standing.
One point that is regularly missed: eligibility is determined through the Sakani platform, not by the bank. You can meet a lender’s commercial criteria and still fall outside the support criteria, or the reverse. Figures and ceilings are revised periodically, so use the official eligibility calculator rather than numbers quoted second-hand.
Financing is available to non-Saudis, on more conservative terms:
The wider ownership picture changed in 2026. Royal Decree M/14 took effect on 22 January 2026, consolidating non-Saudi property ownership under a single framework, and the Council of Ministers approved the executive regulations and the designated geographic zones in June 2026. Those zones include Riyadh. Because the rules are recent and documentation is still being published, confirm the current position before committing funds.
There is no single best lender, because the right one depends on your employment sector, where your salary is paid, and the type of property. The market offers three categories of provider:
Rather than looking for a ranking, compare offers on five points:
Because pricing and promotions shift, request written offers from more than one provider and compare them on the same day. That is the most reliable way to identify the best option for your particular position.
Most rejections come down to causes you can address before you apply:
A rejection is rarely final. Ask for the reason in writing — it tells you precisely what to fix before the next attempt.
Termination is governed by the terms of your contract and by SAMA regulation. Three situations account for most cases:
Termination is not the same as refinancing. Refinancing moves your existing facility to another provider on better terms while the obligation continues; termination ends the contractual relationship. Read the early settlement clause and its associated fees before you sign, and if you cannot reach a resolution with your lender, a complaint can be raised through SAMA’s official channels.
Mortgage requirements in Saudi Arabia are transparent and verifiable in advance, and the most common mistake is searching for a property before establishing borrowing capacity. The productive order is the reverse: calculate your debt burden ratio, review your SIMAH record, check your eligibility on Sakani, then search within the range that is actually open to you.
Once you're ready, speak with the Mada Properties team for expert guidance based on current market insights.
On a SAR 8,000 salary with no existing commitments, the maximum monthly instalment could reach roughly SAR 4,400 at a 55% debt burden ratio. The corresponding financing amount depends on the repayment term and profit rate offered, which is why the result differs between lenders.
Yes, on more conservative terms — a higher down payment and a repayment term tied to your iqama and employment contract. Sakani and REDF support is not available to non-citizens. Ownership itself now falls under Royal Decree M/14, in force since 22 January 2026, within designated zones that include Riyadh.
Indicative limits run between 55% and 65% of monthly income depending on borrower category and lender policy, and all existing commitments count towards it. Check SAMA’s responsible lending principles for the current position, as they are updated periodically.
SAMA raised the maximum loan-to-value ratio on a first home for Saudi citizens to 90%, putting the minimum down payment at 10%. It falls further on subsidised tracks for properties below a defined value ceiling.
Most products offered in the Kingdom are structured on Sharia-compliant contracts — commonly Murabaha or Ijara Muntahia Bittamleek — rather than interest-bearing lending, which is why lenders quote a profit rate rather than an interest rate.
August 27, 2026
Riyadh Metro has changed how the capital’s property market is priced. Distance to the nearest station now sits alongside district and unit size in what buyers weigh, and the effect is already measurable: within a single district, homes near stations have grown in value at a different rate from those on its outer edges.
The station itself does not create value. Three mechanisms do.
A King Saud University study of the KAFD station recorded a 15 to 30 percent rise in vertical residential density, alongside a shift toward mixed-use.
Knight Frank’s 2025 analysis identified what it called a metro premium, comparing price growth near stations with growth in the same district’s outer areas.
Source: Knight Frank, 2025 (Q2 2023 – Q2 2025).
The same research estimates that 1.5 million of Riyadh’s 8.3 million residents live within a 15-minute walk of a station. King Saud University puts the uplift at 10 to 25 percent in market and rental value within 400 to 800 metres. The pattern is consistent: the gap widens in districts that were poorly connected before the metro, and narrows in established ones.
Dubai is the closest comparable market. Its metro has run since 2009, and its transaction data has been studied academically. The findings are less uniform than the headlines suggest.
JLL puts the walking-distance premium at between 5 and more than 25 percent, with high-density communities gaining far more than villa communities. The lesson for Riyadh: proximity pays, but sitting on top of a station does not.
CBRE recorded a premium of around 20 percent on homes near Elizabeth Line stations — and it materialised after the project was approved, well before services began in 2022. Over a longer window, prices near stations rose 80 percent between 2008 and 2023 against 74 percent in the surrounding areas: a net premium of six percentage points.
The takeaway is about timing. Most of the gain lands between announcement and opening, not after. That puts announced Riyadh Metro extensions, including the Red Line expansion toward Diriyah, in the window investors are watching now.
The districts that gain the most share three traits: density with room to grow, proximity to employment hubs, and weak connectivity before the metro.
Low-density villa communities gain less, since residents there still commute by car. Sitting on a metro line is not enough on its own — what matters is genuine walking distance to a station.
Evidence from comparable markets points one way: the metro effect is stronger on commercial property. Stations generate concentrated daily footfall, which serves retail and offices far more directly than a residential unit. That shows up in three places.
Residential remains less volatile and easier to exit. There, the metro effect shows as faster letting and firmer rents rather than a sharp price jump.
Expo 2030 will run on a six-million-square-metre site north of the capital, next to King Salman International Airport, with more than 40 million visits expected. Expo 2030 Riyadh Company estimates a GDP contribution of around SAR 241 billion during construction and roughly 171,000 direct and indirect jobs.
Both forces push the same way. Metro access determines how easily a district is reached; Expo determines how many people need to reach it. North Riyadh corridors close to both carry the strongest case. The usual caution applies to any event-led cycle: judge an asset on net yield and clear title, not projected price.
Riyadh continues to grow on the back of Vision 2030 and Expo 2030, and demand has followed into districts served by the network. Currently available through Mada Properties:
The Riyadh Metro effect on property values is real, but selective. It widens in mid-priced districts, narrows in established ones, and favours commercial over residential. Most of the growth arrives before a line opens, which makes timing the decisive variable.
Speak to the Mada Properties team for a recommendation built on market data rather than assumptions.
August 27, 2026
Milan hosted Expo 2015 for just six months. A decade later, the effect is still visible in its property prices and transaction volumes. For anyone watching Riyadh prepare for Expo 2030, that makes Milan worth a closer look.
Here is what happened in the Milan market before and after the event, and what Saudi investors can take from it.
Milan entered its hosting period still recovering from the 2008 crisis, with home prices around 30% below pre-crisis levels. Momentum built as the event approached: residential sales rose roughly 6.8%, and the city climbed from 24th to 12th in PwC's European city attractiveness ranking.
The fairground, northwest of the city in the Rho-Pero area, later became the Milan Innovation District, home to a hospital, research centres, a university campus and housing. Neighbouring areas felt it directly: in Cascina Merlata, beside the site, the average price per square metre rose from EUR 2,776 to EUR 3,993, up 44%, with transactions up 78%.
Activity moved before prices did. Between 2015 and 2021, residential transactions rose 48.2%, retail sales 60.5%, and offices jumped 179.7%. Rents in the city centre climbed around 40%. Prices rose 30% to 40% overall from 2015, and by 2022 sales volumes were double their pre-Expo level, with selling times halved.
Riyadh will host Expo 2030 in the north of the city, where the supporting infrastructure is already under construction. The early-entry window here is shorter than Milan's was.
A global event does not lift a market evenly. It lifts the locations the new infrastructure actually serves, which is where a professional broker earns their place.
At Mada Properties we track where value is forming and recommend accordingly. Let's talk about north Riyadh.