Complete Property Buying Guide — Saudi Arabia

Understanding the Saudi Arabia Property Market

The property market in Saudi Arabia offers diverse opportunities across its key markets. Riyadh, Jeddah, Dammam, Mecca, and Medina represent the main buying hotspots, with prices and demand varying significantly between regions.

The Saudi Central Bank sets the benchmark interest rate, which influences mortgage pricing across all lenders. Use our mortgage calculator to estimate repayments based on current rates.

Property Prices and Key Markets

Typical prices in Saudi Arabia range from SAR 500,000 for apartments in secondary cities to SAR 2,000,000+ in premium Riyadh and Jeddah locations.

Saudi Arabia’s property market is undergoing massive transformation under Vision 2030, with mega-projects like NEOM, The Line, Jeddah Tower, and Diriyah Gate creating entirely new urban areas. The kingdom introduced mortgage lending relatively recently through the Real Estate Development Fund (REDF), and home ownership has grown rapidly from around 47% to over 60% in recent years

Setting Your Budget

Beyond the purchase price, you need to budget for transaction costs that typically add 6-8% including RETT (5%), agency fees, and legal/registration costs to the total. Your deposit requirement is 10-30%, though this varies by lender and your buyer profile.

Real estate transaction tax (RETT) of 5% replaced the 15% VAT on property sales in 2020, significantly reducing transaction costs

Read our buying costs guide for a detailed breakdown of all purchase-related expenses.

Getting Finance Approved

Mortgage terms in Saudi Arabia extend up to 25-30 years through conventional and Islamic financing. Lenders typically offer up to 90% for primary residences with REDF support, typically 70-85% through commercial banks loan-to-value, meaning you need at least the remainder as a deposit.

Compare rates across major lenders including Saudi National Bank (SNB), Al Rajhi Bank, Riyad Bank, Banque Saudi Fransi, Saudi Awwal Bank (SAB), and the Real Estate Development Fund (REDF). Our mortgage types guide explains the differences between available loan products.

Finding and Securing Property

Working with a qualified real estate broker (licensed with Ejar platform) is the standard approach in Saudi Arabia. Research local areas thoroughly, attend viewings, and consider factors like transport links, amenities, and future development plans.

Legal Process and Due Diligence

Property transfers in Saudi Arabia require a qualified lawyer (محامي) — increasingly common though not mandatory to handle the legal process. Property transactions are registered through the Ministry of Justice’s electronic system. The buyer and seller attend the notary court (كتابة العدل) to execute the transfer deed, or complete the process electronically through the Nafaz platform. Title verification is done through the Ifragh electronic system. Payment is often handled through escrow via the Wafi platform for off-plan purchases.

Professional building inspections are becoming more common but are not standard. For off-plan purchases (common in Saudi Arabia), buyers should verify the developer’s registration with Wafi and review the escrow account arrangements. The Saudi Building Code sets construction standards that should be verified for new builds

See our property inspection checklist for what to check before committing.

Government Support for Buyers

Sakani (سكني) is the government’s primary housing programme, offering subsidised housing products, free land (through the Ministry of Housing), and interest-free mortgage support through the Real Estate Development Fund (REDF). REDF provides profit-free financing up to SAR 500,000 for eligible Saudi citizens. The programme targets Saudi nationals only and has supported hundreds of thousands of families since its expansion

Check our government grants guide for the latest programmes and eligibility criteria.

Next Steps

Use our mortgage calculator to model different scenarios, browse Saudi Arabia FAQs for quick answers, or read our complete mortgage guide for detailed information on rates and lenders.