Saudi Arabia Boosts Real Estate Growth with Government Projects and Reforms

Jeddah Summit Highlights Saudi Real Estate Growth

At the 19th Real Estate Development Summit in Jeddah on November 12, experts underlined significant growth in Saudi Arabia's real estateews">real estate sector. This expansion is largely driven by government initiatives and regulatory reforms that are reshaping the market. With a focus on strategic urban centers like Riyadh, Jeddah, Al-Khobar, Makkah, and Madinah, the kingdom is witnessing a surge in demand for hospitality, logistics, and infrastructure projects. Notably, younger buyers are increasingly gravitating towards smaller, amenity-rich housing units, a shift that reflects changing demographic preferences. The summit emphasized how these developments align with Vision 2030, Saudi Arabia's ambitious blueprint for diversifying its economy beyond oil.

Landmark Foreign Ownership Law Set for January 2026

According to Peninsula Consulting, Saudi Arabia is preparing to implement the "Law of Real Estate Ownership and Investment by Non-Saudis" in January 2026. This groundbreaking law will allow foreign investors to purchase real estate in designated areas like Riyadh and Jeddah, though Mecca and Madinah remain off-limits. The law decouples property ownership from residency, enabling foreign buyers to invest without a residency permit. Managed by the Real Estate General Authority (REGA), this reform is expected to attract substantial foreign direct investment (FDI) by offering first-mover opportunities at prices lower than in neighboring markets like Dubaief="/for-sale/uae/dubai">Dubai and Qatar.

Vision 2030 and Economic Diversification Goals

The Middle East Briefing outlines how these legal reforms support Saudi Arabia's Vision 2030, which aims to reduce the kingdom's economic reliance on oil by expanding its real estate sector. By facilitating foreign ownership, the new property law is poised to increase the flow of international capital into the market. This influx is expected to spur development and diversify economic activities, further supported by large-scale government projects like NEOM and the Red Sea Project. As foreign participation grows, the Saudi market is likely to see enhanced transparency and increased competition among developers.

Urban Centers See Increased Real Estate Activity

The cities of Riyadh, Jeddah, Al-Khobar, Makkah, and Madinah are emerging as key markets, driven by their strategic locations and cultural significance. A report by Campaign Middle East highlights how these urban centers are witnessing increased activity in both residential and commercial real estate. The influx of foreign investors and developers could further stimulate local economies, creating jobs and enhancing infrastructure. Additionally, the demand for well-located, modern housing units offers developers lucrative opportunities to cater to a younger demographic seeking vibrant community lifestyles.

Stakeholders' Perspectives on Market Reforms

Stakeholders across the board are optimistic about the new real estate dynamics. As noted in a Curtis law firm report, these reforms are attracting interest from international real estate firms looking to establish a foothold in the kingdom. "Saudi Arabia's transparent and ambitious policy framework provides a fertile ground for real estate investments," said Maya Tarek, Senior Analyst at RealEstateAbroad.com. This sentiment is echoed by local developers who are gearing up to meet increased demand, showcasing projects that blend cultural heritage with modern amenities.

Future Implications for Saudi Arabia's Real Estate Market

Looking ahead, Saudi Arabia's real estate sector is poised for robust growth, supported by favorable regulatory changes and strategic government projects. The kingdom's focus on diversifying its economy through real estate development aligns with global investor interests in emerging markets. As the new property law takes effect in 2026, international investors will have unprecedented access to a market ripe for development. This evolution presents numerous opportunities for stakeholders ranging from private investors to large-scale developers, promising a vibrant and competitive real estate environment.