What changes expects Saudi Arabia in 2026?

In early July, the Saudi government approved a law-in-draft that would allow foreigners to buy real estate in the country. After the law comes into force, non-residents will be able to purchase real estate in certain regions of the Saudi Kingdom, such as Riyadh and Jeddah (the country's second largest region). The most promising areas for Russian buyers will be areas with developed infrastructure, transport accessibility and government participation in the project, such as new residential areas in Riyadh or projects off the coast of Jeddah.

• The law comes into force on January 1, 2026.
• Now the rules for buying real estate for foreign citizens have become much simpler.
• This decision has already led to increased demand for real estate among foreigners, as we see a large number of bookings from foreign investors who want to fix existing prices.
• This move by the KSA government has led to a significant increase in the number of registrations of new developers and real estate companies, which will soon increase competition and lead to higher prices.

Such transactions have a number of additional advantages, including the absence of taxes on personal income from real estate rentals and capital gains on resale. The list of places where transactions with foreign investors will be allowed is determined by the kingdom's General Directorate of Real Estate. 

By 2030, Saudi Arabia plans to invest almost $900 billion in the construction of hotels along the Red Sea, the world's largest building in Riyadh, in the creation of "cities of the future" - Oxagon, Trojena and Line, as well as a ski village overlooking the desert. This is a global project called Neom, and, according to its creators, it should bypass Dubai and become the most modern and attractive object in the Middle East, both for business and tourists. 

Already in 2024, the residential real estate market in the largest regions of Saudi Arabia (Riyadh, Jeddah and Dammam) grew: the total number of transactions reached 102,500 worth 118 billion riyals (about $32 billion), which is 50% higher than in 2023. In Riyadh, most people invest in real estate in the areas of Al Sahfa, Al Yasmin, Al Malqa and other premium neighborhoods, while in Jeddah, buyers are interested in purchasing housing mainly in the coastal areas of Ash Shati and Al Murjan.

Thus, Saudi Arabia is opening a unique window of opportunity for foreign investors to make profitable investments in the fast-growing real estate market with high profitability potential and long-term value.