Starting in January 2026, Saudi Arabia will allow expats to buy property in Saudi Arabia, a major change that opens up the real estate market to foreign buyers. The Saudi Cabinet approved the Real Estate Ownership and Investment Law on July 8, giving non-Saudis the right to own property in specific areas like Riyadh and Jeddah. However, restrictions will still apply in Mecca and Medina, where ownership remains limited. The law takes effect in early 2026, and the Real Estate General Authority (REGA) will publish the exact rules and approved locations within 180 days on the Istitlaa platform.
This means that foreigners with valid iqamas or Premium Residency can look for houses for sale in Saudi Arabia in approved cities. Buyers will need to use approved government platforms, get approvals from REGA and other ministries, and pay a 5% real estate transaction tax. Both individuals and companies can take part in this new opportunity, whether for personal or commercial purposes.
Buying property in Saudi Arabia for foreigners
The decision is part of Saudi Arabia’s Vision 2030 plan, aiming to boost the Saudi Arabia real estate sector and attract more international investment. Officials believe these changes will help increase the housing supply and support big projects like Jeddah Central and Diriyah Gate. Investors focused on development projects may face stricter financial and timeline requirements, especially in commercial zones.
Still, there are limits. Expats asking can foreigners buy property in Saudi Arabia should know that Mecca and Medina remain mostly off-limits, except under particular conditions. REGA will outline those limits when it publishes the final rules.
This isn’t the first time Saudi Arabia has made changes for foreign investors. Earlier in 2025, the government made it possible for foreigners to invest indirectly by purchasing shares in real estate companies working in Mecca and Medina. But this new law is the most direct step yet, giving foreigners full ownership rights and putting Saudi rules closer to those in countries like the UAE and Qatar.
Expats interested in buying property in Saudi Arabia for foreigners should start getting ready by keeping up with REGA updates, speaking with legal experts, and connecting with brokers. Since the final regulations are expected before mid-January 2026, early action can help serious investors get ahead.
This policy shift marks a major turning point—not just for the Saudi Arabia real estate market, but also for how foreigners can take part in the country’s growth. Its success will depend on clear rules, a smooth rollout, and finding the right balance between foreign demand and local housing needs.
