05.01.2026
Saudi Arabia is taking a historic step that will reshape the global map of high-end real estate. Following the approval of the new Law of Real Estate Ownership and Investment by Non-Saudis by the Council of Ministers, the Kingdom will allow foreign individuals and companies to acquire real estate ownership in designated zones, effective from January 2026.
This marks the most significant reform in the sector in more than two decades and represents a key pillar of Vision 2030 – the national program aimed at diversifying the economy, attracting international investment, and developing sustainable premium destinations across the Kingdom.
What exactly does the new law allow?
The new framework replaces the existing law from 2000 and introduces:
• The possibility for foreign individuals and legal entities to acquire ownership or other real rights over real estate. Purchases will be permitted only in specially designated zones, to be determined by Saudi regulatory authorities (the full list has not yet been officially published).
• Regulatory approval for certain types of investments. Commercial projects will require authorization and must meet criteria such as:
– investment above a specified threshold (public sources indicate an indicative level of around SAR 30 million);
– development of the project within a defined timeframe;
– completion and commissioning within a few years.
This mechanism ensures that foreign investment contributes to real economic development rather than speculative purchases.
• Potential access to new areas
The law allows for ownership in special zones within cities of historical significance, although details and restrictions are still being finalized.
The luxury real estate market in Saudi Arabia – steady growth and global interest
The reform comes at a time when Saudi Arabia is already undergoing a profound transformation in the premium real estate segment.
Massive investments in Red Sea megaprojects, next-generation sustainable cities, and landmark architecture are positioning the Kingdom as the fastest-growing premium market in the Middle East.
Projects such as The Red Sea, NEOM, Diriyah Gate, and AlUla combine avant-garde architecture, protected natural environments, and sustainable practices. They are attracting leading global architecture studios, international luxury brands, and high-net-worth investors.
Following the announcement of the new law, shares of several leading Saudi real estate companies rose by more than 5%, underlining market confidence and the anticipated growth of the premium segment.
Luxury residences on the Red Sea – a new benchmark in architecture and private coastal living
Saudi Arabia Sotheby’s International Realty represents some of the most exceptional private residences in the region, including:
Four Seasons Private Residences – Shura Island, The Red Sea
These villas interpret the dunes and light of the Red Sea through a design that seamlessly blends with the natural landscape. Expansive living areas, private pools, and direct beach access are just some of the amenities offered by these outstanding residences.
SLS Red Sea Residences
Villas with private pools, sea-facing terraces, interiors by Lissoni & Partners, and access to luxury concierge services, private chefs, spa treatments, and fully personalized service.
These projects reflect the Kingdom’s ambition to create sustainable, high-quality developments that combine natural beauty, architectural inspiration, and world-class standards.
What does the new reform mean for international investors?
Access to an entirely new premium market
For the first time, foreign buyers will have a legal right to purchase property in Saudi Arabia – under clear conditions and within designated zones.
Potential for long-term growth
The state’s structural investments point to stability and rising demand in the high-end segment.
Greater transparency and regulation
Saudi institutions emphasize their commitment to transparent processes, risk management against speculation, and protection of market stability.
With the 2026 reform, Saudi Arabia enters a new phase of development – transitioning from a closed and tightly regulated market to a globally open destination for premium investment.
Combined with its impressive coastal and urban developments, the Kingdom is emerging as one of the most compelling new markets worldwide for high-end real estate enthusiasts.
The team at Bulgaria Sotheby’s International Realty will be pleased to connect you with Saudi Arabia Sotheby’s International Realty for up-to-date information and tailored investment opportunities.