Owning real estate in Saudi Arabia has become easier and more transparent thanks to government reforms and new trends to attract investments. Whether you are a Saudi citizen or a foreigner, the opportunities available in the Saudi real estate market are worth considering and taking advantage of. By adhering to the necessary conditions and procedures, you can invest safely and confidently in this promising market. The Saudi government also offers many opportunities to acquire real estate, whether for citizens or foreigners, while adhering to some conditions and procedures. In this article, we will review how citizens and foreigners own real estate in Saudi Arabia, and the procedures required for that.
Saudi citizens own real estate
The conditions
Saudi citizens have the right to own real estate anywhere within the Kingdom without major restrictions. To own real estate, individuals need to submit essential documents, including a national ID and title deed if they purchased the property from another party. It is preferable to verify the authenticity of documents and property records in the competent authorities to ensure that there are no legal disputes or debts on the property. Additionally, individuals must have no prior judicial rulings indicating that the property is not owned by them. In addition, the requested property must not be located in places where the Kingdom of Saudi Arabia prohibits ownership, such as Mecca and Medina.
Saudi and Gulf citizens can own real estate throughout the Kingdom, with the exception of Mecca, Medina, and agricultural lands. They must register the property at the Ministry of Justice and submit the required papers and documents, in addition to paying the prescribed fees and taxes.
Citizens of Gulf countries can own up to three properties in the Kingdom, provided they meet several conditions. Firstly, each property must be less than 3,000 square metres. Secondly, these properties must be for residential purposes only. Third, real estate must be built on owned lands within 6 years from the date of its registration. Finally, 4 years must pass before they can sell, donate or bequeath the property.
procedures
First, you must log in to the Ehkaam platform and create a special account via the link https://ehkaam.sa. Then fill in the data required to create the account. After that, click “Submit Request”. Then, attach and submit the documents and papers required for the application. You must also review the engineering offices approved by municipalities and secretariats and attach cadastral plans for the property if your application is new. If you have previously submitted these plans, you must review them and ensure they are correct to complete the application. Finally, send the application and follow it through the platform until the ownership application is approved.
Government support
Saudi government programs support citizens in acquiring real estate to improve housing access and enhance quality of life. A leading initiative is the housing programs by the Ministry of Housing and the Real Estate Development Fund. The programs also offer soft loans with low or zero interest rates to facilitate home purchases for citizens. The government also provides direct financial support to cover part of the cost of purchasing the property. This reduces the financial burden on citizens and increases their ability to own homes.
In addition, the government is developing large-scale housing projects to offer affordable units catering to diverse social groups. These efforts contribute to enhancing social and economic stability in the Kingdom, and support Saudi Vision 2030. Which aims to raise the percentage of citizens’ home ownership to higher levels.
Conditions for foreigners owning real estate in Saudi Arabia
Foreigners can own real estate in Saudi Arabia, but under certain conditions. The Government allows foreigners to own real estate in special economic cities such as King Abdullah Economic City, and in mega projects such as NEOM. However, they should provide the necessary approvals from the competent authorities. The Kingdom of Saudi Arabia has provided non-Saudi persons with the opportunity to own real estate within the Kingdom. Given the crucial role of real estate in attracting investments, the Kingdom has established conditions for foreigners to own property. These conditions are as follows:
Valid residency: A foreigner must have a valid residency in the Kingdom to be able to own a property.
Approval of the Ministry of Interior: If a foreigner wishes to own a private residence, the approval of the Ministry of Interior must be obtained in accordance with what is stated in the Real Estate Property Law.
Approval of the Ministry of Foreign Affairs: For the headquarters of companies, legal persons and international organizations, approval from the Ministry of Foreign Affairs is required.
Minimum investment: To own real estate for the purpose of investment, the minimum project must be 30 million Saudi riyals.
Investment Duration: The minimum investment period has been set at five years, starting from the time of registering ownership.
Approvals and licenses: The investor must submit documents proving obtaining approval and licensing to practice the profession or economic activity from the competent authority.
Renting in Mecca and Medina: Foreigners are allowed to rent housing in Mecca and Medina for a period not exceeding two years, with the possibility of extending the period only twice, without allowing them to own property. Finally, foreigners may not own more than one property in Saudi Arabia.
Future trends of the real estate sector in Saudi Arabia
Saudi Arabia is working to develop infrastructure and enhance the real estate sector through Vision 2030, which aims to attract more foreign investments and improve the quality of life for citizens. Vision 2030 seeks to transform the Kingdom into an advanced global economic center, and its ambitious plans include a group of huge projects that are expected to bring about a major change in the real estate market.
The necessary papers to own a property in Saudi Arabia
Owning real estate in Saudi Arabia is an attractive investment opportunity. Especially, with the economic growth witnessed by the Kingdom and its trend towards developing infrastructure, attracting foreign investments, and expanding the real estate financing market. After knowing the conditions for acquiring a property in Saudi Arabia, you must review the necessary documents for this, which include the following:
- A letter containing information about the type of property, its area, and location.
- A copy of your current passport, and another copy of the first passport that was registered when you entered the Kingdom for the first time.
- Submit a copy of your valid residency and that of your wife.
- A copy of the birth certificates of your children who were born in the Kingdom.
- A letter from your employer proving your income and good behavior.
- A copy of the ownership document, building permit, and survey report.
- A copy of your bank statement for the last six months.
- A map of the building showing the dimensions of the street and the area surrounding the building.
- Confirmation that the property is designated for housing.
Also read about a comprehensive overview of the local real estate market in Riyadh
