Buying Off-Plan vs. Ready-Made Property in Riyadh: Which is better for investment?

The Kingdom of Saudi Arabia has recently opened its doors to foreign investors in an unprecedented way. It is now possible for them to obtain long-term residency in Saudi Arabia through real estate ownership for non-Saudis. This new pathway reflects the Kingdom's strategy to attract investment and enhance stability, granting non-Saudis the opportunity to benefit from permanent residency advantages with the freedom to own property in designated areas.

Through the Reinvest platform, we highlight the pathway of real estate ownership for non-Saudis and the requirements for obtaining long-term residency in Saudi Arabia, alongside the benefits and services associated with the Premium Residency program.

Does Buying Property in Saudi Arabia Grant Residency?

Currently, purchasing property in Saudi Arabia does not directly grant permanent residency. However, foreign investors can benefit from other residency systems, such as Premium Residency, which may include real estate investment as one of the options for obtaining long-term residency in Saudi Arabia.

The current system focuses on attracting qualitative investments that contribute to developing the national economy. Therefore, purchasing property alone is not enough; it must be part of an integrated investment that aligns with the Kingdom's goals. Premium Residency offers a golden opportunity for those wishing to combine stability and investment, granting the investor freedom of movement and the benefits of practicing commercial activities.

While real estate alone is not a direct gateway to residency, careful planning and investment can open other doors for investors to reside and settle in the Kingdom.

How Can Foreigners Own Real Estate in Saudi Arabia?

The Saudi system allows foreigners to own real estate according to specific conditions to ensure a safe and organized investment, including:

Ownership must be for personal housing or investment purposes.
Obtaining approval from competent authorities, such as the Ministry of Investment.
The property must not be located in prohibited areas, such as Makkah and Madinah.

Additionally, the investor must prove financial solvency to ensure the investment does not become an economic burden. Certain types of properties, such as commercial or tourism-related ones, may require additional licenses.

Advantages of Owning Property in Saudi Arabia

Although buying property does not grant residency directly, investing in commercial or residential real estate carries several important advantages:

Fixed and Secure Assets: Real estate investment provides tangible assets in a market experiencing continuous growth.
Continuous Additional Income: Profits can be achieved by leasing residential or commercial properties.
Capital Appreciation: With urban expansion and mega-projects like NEOM and Qiddiya, property values rise over time, making it an effective hedge against inflation.

How to Obtain Residency via Real Estate Purchase

Foreigners wishing to settle can obtain residency through property purchase according to specific legal controls:

Requirements for Property Purchase:

Property Type: The property must be designated for residential use, not commercial or industrial, to ensure the goal is settlement and residency.
Property Registration: The property must be officially registered in the approved Real Estate Registry system within the Kingdom.
Permitted Areas: Ownership is restricted to specific zones designated by the authorities to encourage investment.

Application Procedures:

Submit an Official Request: To the Ministry of Investment or the relevant authority.
Proof of Financial Solvency: Submit documents proving the ability to purchase and maintain the property.
Documented Purchase Contract: Providing a certified contract including value, location, and type.
Legal and Security Reviews: The request undergoes vetting by competent authorities.

Premium Residency and Real Estate Investment

Premium Residency is one of the most prominent residency programs in Saudi Arabia. It grants holders multiple benefits, including the freedom to own property and conduct business. Requirements include: