Owning a home in Saudi Arabia has become one of the country’s defining economic and social priorities. Under Vision 2030, the government aims to reach a 70 percent homeownership rate by 2030, a target that already seems within reach as the rate surpassed 65 percent in 2024.
But what does this mean for ordinary citizens, young professionals, and even expatriates who call Saudi Arabia home? In this comprehensive guide, we’ll explore the latest updates on the Kingdom’s homeownership journey, current market trends, regional insights from Riyadh to Makkah and Madinah, and opportunities for both Saudis and non-Saudis seeking to buy property in the Kingdom.
The Evolving Housing Landscape
Saudi Arabia’s real estate sector has transformed dramatically over the past decade. Once dominated by government housing projects and traditional financing models, it now features sophisticated mortgage markets, private-sector developers, and large-scale giga-projects that reshape urban life.
According to the Ministry of Municipal and Rural Affairs and Housing (MOMRAH), homeownership reached 65.4 percent by the end of 2024, up from 47 percent in 2016 — a remarkable leap driven by new financing tools, land allocation initiatives, and strong demand from young families. (Arab News)
This growth reflects the Kingdom’s success in diversifying its economy and improving quality of life. Real estate now accounts for over 6 percent of national GDP, and new housing developments are creating jobs, stimulating investment, and modernising Saudi cities. (PwC Middle East)
Government Programmes Fueling Homeownership
Sakani Programme and Land Allocation
The Sakani programme remains the most visible government initiative supporting Saudi families. It provides subsidised loans, free land plots, ready-built units, and developer partnerships to make ownership accessible. By 2025, Sakani had helped over 220,000 Saudi families find homes across the Kingdom.
Real Estate Development Fund (REDF) and Mortgage Market
The REDF has expanded financing options, allowing citizens to obtain competitive mortgages through Saudi banks. These programmes often feature interest-rate subsidies, reduced down payments, and flexible repayment terms.
Mortgage financing has become a cornerstone of Saudi housing growth. Total mortgage lending is expected to exceed SAR 900 billion by 2026, up from SAR 600 billion in 2023. (Arab News, 2025)
Vision 2030 Housing Targets
The Housing Programme under Vision 2030 aims for a 70 percent homeownership rate by 2030. With 65 percent achieved, the final phase will focus on affordability, urban balance, and inclusion of younger and lower-income families.
Market Trends and Real Estate Performance (2025 Update)
- Transaction value: SAR 267.8 billion across 236,690 transactions in 2024 — up 27 percent year-on-year.
- Home prices: Average national residential price growth of 5 percent in Q1 2025.
- Riyadh: Property values up 10.7 percent year-on-year; apartment prices +75 percent since 2019.
- Jeddah: 53 percent growth in residential transaction volume from 2023 to 2024.
- Mortgage market: 37 percent annual growth in the number of new mortgage loans.
These indicators demonstrate a strong, resilient market — though they also highlight affordability pressures for younger buyers and middle-income households.
Opportunities for Non-Saudis: Expatriate and Foreign Investment Rules
While homeownership programmes like Sakani primarily serve Saudi nationals, non-Saudis can now purchase property under specific conditions, especially for investment or residence purposes. The legal framework has evolved to make the market more inclusive and attractive for global investors.
Ownership Regulations for Non-Saudis
- Residence-Based Ownership: Expatriates holding valid residence permits may buy one property for personal use, subject to municipal approval.
- Foreign Investment Licences: Companies or high-net-worth individuals can buy property for commercial or residential projects through the Saudi Investment Law via the Ministry of Investment (MISA).
- Special Zones and Projects: Developments such as NEOM, The Line, Qiddiya, King Abdullah Economic City, and select parts of Makkah and Madinah allow non-Saudis to lease or own long-term property interests.
- Makkah and Madinah Restrictions: Direct freehold ownership by non-Saudis remains limited near the two holy mosques; however, long-term leasehold and investment rights are increasingly available in surrounding districts.
These changes signal a gradual liberalisation of the real-estate sector, aligned with Vision 2030’s goal of attracting foreign investment and diversifying income sources.
Expatriate Demand and Market Behaviour
Surveys by Knight Frank and Arab News in 2024 show that over 60 percent of expatriates earning SAR 30,000 or more monthly prefer to buy rather than rent if financing is accessible. The most popular destinations for expat buyers include Riyadh, Jeddah, Makkah, and Madinah, where infrastructure, lifestyle, and employment opportunities are strong.
Additionally, developers are now targeting mixed-use communities and serviced apartments suitable for expatriates and international investors seeking medium- to long-term stays.
Regional Breakdown: Riyadh, Jeddah, Makkah, and Madinah
Riyadh – The Economic Powerhouse
Riyadh remains Saudi Arabia’s primary growth engine. Fueled by population inflow, Vision 2030 projects, and business-friendly reforms, it boasts the country’s highest property demand and fastest appreciation rates.
Apartments in Riyadh average SAR 5,780 per m², while villas reach about SAR 5,190 per m² — increases of 75 and 40 percent respectively since 2019. (Argaam, 2025)
The city’s ongoing New Murabba Project, King Salman Park, and Diriyah Gate developments are creating thousands of new residential units, combining luxury housing with public amenities and green spaces.
Jeddah – The Coastal Gateway
Jeddah’s housing market continues to expand, supported by infrastructure upgrades and the Jeddah Central Project, a 5.7 million m² waterfront development featuring residential towers and cultural districts.
In 2024, Jeddah’s residential transaction volume rose 53 percent year-on-year, demonstrating renewed demand among families and investors alike.
Makkah – Pilgrimage Capital and Emerging Investment Hub
Makkah’s real estate market holds unique appeal due to its spiritual significance and year-round visitor influx. While foreign ownership directly adjacent to the Holy Mosque remains restricted, non-Saudis can participate in long-term leasehold projects and hotel-residence investments in peripheral areas such as Al Khalidiyyah, Al Kaakiya, and Al Naseem.
Recent projects like the Rou’a Al Haram initiative and Jabal Omar Development are expanding residential supply, blending hospitality, housing, and retail elements. The demand for furnished apartments and serviced residences for seasonal visitors continues to rise, offering attractive yields for investors.
Madinah – The City of the Prophet and a Smart-City Vision
Madinah’s housing development focuses on sustainability, urban efficiency, and pilgrimage logistics. The Madinah Region Development Authority launched smart-housing and mixed-use projects near Prince Mohammed bin Abdulaziz International Airport and King Fahd Road, boosting residential capacity by 2026.
While property rules mirror Makkah’s, investment through leasehold arrangements or local partnerships allows non-Saudis to take part in this growing market. The city also benefits from continuous demand for mid-range family housing and student accommodation linked to the Islamic University of Madinah.
Affordability and Financing Outlook
While progress is impressive, affordability remains a core challenge. Property prices have risen faster than incomes for some demographics, and higher global interest rates have slightly cooled first-time buyer demand — down from 40 percent in 2023 to 29 percent in 2025. (Sahm Capital, 2025)
However, banks are responding with innovative mortgage products, longer repayment periods (up to 30 years), and digital approval systems that simplify the process.
For expatriates, mortgage access is still limited but improving — select banks now offer expat-friendly mortgages for clients with stable income, residency status, and strong credit records.
Opportunities and Challenges Ahead
Opportunities
- Government incentives and high urban demand.
- Expanding mortgage and financing ecosystem.
- Strategic investment zones (NEOM, Jeddah Central, Diriyah Gate).
- Attractive yield potential in religious tourism hubs.
- Long-term population growth supporting demand.
Challenges
- Rising property prices in major cities.
- Limited affordability for first-time buyers.
- Regulatory complexity for non-Saudi ownership.
- Regional supply imbalances (high in premium, lower in affordable).
- Global interest-rate volatility affecting mortgage costs.
Practical Advice for Buyers (Saudis and Non-Saudis)
- Define your purpose – homeownership vs investment.
- Understand eligibility – verify if you qualify for Sakani or foreign ownership permits.
- Evaluate location strategy – city centres for convenience, outskirts for affordability.
- Assess financing options – compare mortgage rates, down payments, and terms.
- Check project credibility – ensure the developer is licensed and project registered with the Off-Plan Sales and Leasing Program (Wafi).
- Plan long-term – property appreciation is strongest over 5–10 years.
- Stay compliant – respect religious-zone ownership restrictions in Makkah and Madinah.
- Consider sustainability – new green developments may offer better long-term value and energy efficiency.
The Road to 2030
Saudi Arabia’s housing vision is both ambitious and attainable. The next five years will emphasise affordable-housing diversification, digital mortgage services, and balanced regional development. Private-sector participation, smart-city design, and inclusive foreign-investment laws will shape the market’s future.
A recent policy initiative to stabilise rental prices in Riyadh for five years underscores the government’s commitment to controlling inflation and protecting residents. (Financial Times, 2025)
At the same time, new residential projects in Makkah and Madinah promise to improve access for Saudi citizens while welcoming international capital through long-term partnerships.
If progress continues at this pace, the Kingdom could reach or even surpass its 70 percent ownership goal before 2030, setting a new benchmark for housing development in the Middle East.
Conclusion and Call-to-Action
Homeownership in Saudi Arabia has evolved from a dream to an achievable goal for millions. Backed by government vision, robust financing, and investor confidence, the market is opening new doors not only for Saudi citizens but also for qualified expatriates and foreign investors.
For Saudis, now is the time to explore Sakani opportunities, mortgage programmes, and new communities designed to suit every budget.
For non-Saudis, the expanding legal framework and special economic zones offer promising real-estate investment and residence options.
Next steps:
- Review your financial readiness.
- Research ownership regulations.
- Explore trusted developers and mortgage options.
- Follow housing updates from MOMRAH, REDF, and the Saudi Investment Ministry.
With informed planning and a long-term perspective, homeownership in Saudi Arabia — whether in Riyadh, Jeddah, Makkah, or Madinah — can become a cornerstone of financial growth and personal stability.
