Saudi Arabia opens real estate sector to foreign buyers

• Changes, floated last year, now in effect
• AGBI broke the news in November
• Details of restrictions due in first quarter

Regulators in Saudi Arabia have announced the implementation of new rules that for the first time let foreigners buy property en masse in the Gulf state.

The Real Estate General Authority (REGA) said in a statement late on Thursday that the changes, first floated last year, are now in effect. Applications by non-Saudis to buy real estate via the official “Saudi Properties” portal are under review, it added.

AGBI broke the news in November last year that the regulations would come into effect on January 22.

REGA also said the “Geographical Zones Document”, detailing which areas remain subject to varying restrictions for non-Saudi buyers, would be announced in the first quarter of this year.

It reiterated that ownership in the holy cities of Mecca and Medina would be restricted to Muslims only.

The changes to real estate legislation form part of numerous reforms aimed at bringing in investment and inflows of foreign capital.

Separately, the main market of the Saudi Exchange will lower restrictions on foreign investors beginning next month.

REGA has said the plans would support Saudi Arabia’s Vision 2030 goal of expanding real estate economic activity to $85 billion a year.

The statement said: “The system aims to improve the quality of real estate projects by attracting international developers and leading companies, stimulating growth across residential, commercial, industrial, and tourism sectors, and contributing to the creation of broad employment opportunities for Saudi citizens.”

Data earlier this week, meanwhile, showed Saudi property prices had fallen for the first time in five years.

The real estate price index, released by the General Authority for Statistics, recorded a 0.7 percent decline in the last quarter of 2025 compared to the fourth quarter of 2024.

The drop stemmed largely from a 2.2 percent decrease in residential property prices. The overall decline was the first since the fourth quarter of 2020 and the steepest since 2019.

Further reading:

• State of the market: Saudi real estate in depth
• Saudi Arabia bills 60,000 landowners under new tax rule
• Saudi mortgage lending drops to nine-year low