House price index
The Real Estate Price Index (REPI) has followed a steady upward trend since 2014, rising from a base level of 100 to 125 by the end of 2024. The average annual growth rate is roughly 2–2.5%, indicating a sustained appreciation of residential property. This reflects both organic demand and the impact of national megaprojects aimed at reshaping urban development under Vision 2030.
Total value of real estate transactions
Over the past decade Saudi Arabia's property market has shown sustained growth in value terms. Between 2014 and 2023 the total value of transactions rose steadily from SAR 327 billion to SAR 550 billion. In 2024 a moderate correction to SAR 533 billion was recorded, reflecting a short-term cooling amid regulatory changes and asset revaluation. Even so, the volume remains historically high, confirming sustained interest in the market.
Full opening of the market to foreign investors
Until 2026, foreigners were permitted to acquire property only in restricted zones and designated projects (such as Riyadh, Jeddah, Dammam, NEOM, Diriyah and Medina Knowledge Economic City).
From 2026 foreign ownership will be permitted for residential, commercial, industrial and agricultural property across the country — in zones approved by the executive authorities, and not only in narrowly defined investment districts.
- Foreign residents (living in Saudi Arabia) will be entitled to own one residential unit outside the designated investment zones — not only in special investment districts.
- Non-residents and foreign companies will be able to acquire property in specially designated zones defined by the regulator.
- Commercial, industrial and agricultural property will become available to foreigners in all cities without exception — unlike under the previous restrictions.
In 2026 ownership will still be restricted or capped in certain areas:
- Mecca
- Medina
- Jeddah
- Riyadh
This stems from religious and national policy aimed at preserving cultural values, as well as from security considerations. Exceptions will be made for Muslim investors.
The opening of the market is expected to trigger capital inflows from Asia, Europe and the Middle East — from investors previously restricted in their property ownership rights in Saudi Arabia. The liberalisation will also support the development of private demand, particularly in major urban centres and large-scale projects such as NEOM and Diriyah.
Foreign demand
The most active buyers of property in Saudi Arabia are nationals of the UAE, Egypt, India, Pakistan and the United Kingdom.
Price per square metre
Saudi Arabia shows no significant gap in the price per square metre between its largest cities.
Rental yield
At the same time, rental yields in Saudi Arabia remain relatively high — from 6.4% to 8.4% in the major cities.
The opening of the market represents a major stimulus for the sector, since Saudi Arabia's property market has long attracted investors from the Middle East who were previously unable to register ownership directly.
It is important to understand, however, that these changes concern only those regions where foreigners were previously barred from buying property. In areas where the market was already open, essentially nothing changes.
Saudi Arabia also displays a number of features that may reduce its investment appeal. One of them is the freeze on rents in the capital, Riyadh. Rising investment activity pushed prices up, which prompted centralised regulatory intervention — a potentially worrying signal for free market dynamics.
Saudi Arabia is taking significant steps towards national transformation while at the same time applying mechanisms that are restrictive from a free-market perspective.
In addition, the scale of The Line, part of the NEOM megaproject, has been reduced. Originally planned as a linear city 180 kilometres long, it has now been scaled back to just a few kilometres, while other parts of NEOM continue according to the original plan.
Genuine investment interest today therefore attaches to only a portion of the projects in Saudi Arabia.
The share of foreign investment is expected to rise substantially in 2026–2027 as pent-up demand is released, after which it will probably decline in 2028 and settle at a new equilibrium level.
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