Dashen Luxury · For investors

Investing in Jeddah real estate — what is true right now.

A plain guide to who can invest, where, what it costs and how the process works under Saudi Arabia’s 2026 rules. Realistic numbers, no inflated promises.

Updated October 2026
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~7–8%Indicative average gross rental yield, JeddahMarket listing data, May 2026
5%Real Estate Transaction Tax on purchase priceZATCA
2.5%Maximum brokerage commission set by REGAREGA
2%REGA fee when non-Saudis dispose of property in JeddahImplementing Regulations, 2026
SAR 4MProperty value for Premium Residency (owner route)Premium Residency Centre

What changed in 2025–2026

The rules investors need to know

Saudi Arabia expanded non-Saudi property ownership with a new law in force since January 2026. Here is the timeline that matters for anyone buying in Jeddah today.

August 2025 — White land rules tightenedAnnual fees on undeveloped land of 5,000 m² or more range from 2.5% to 10% of value, depending on the zone priority.
September 2025 — Riyadh rent freezeRents in Riyadh are frozen for five years. REGA has said no similar controls are planned elsewhere, so Jeddah rents remain market-based.
22 January 2026 — New non-Saudi ownership law in forceThe new law replaces the earlier licence-based system and covers non-Saudi individuals and companies, resident and non-resident. Its detailed regulations and zones followed in June 2026.
May 2026 — Vacant property fees approvedA fee of up to 5% of the building’s value per year on long-vacant properties. It applies only after a specific announcement for each city.
23 June 2026 — Regulations and zones approvedThe Council of Ministers approved the implementing regulations and the designated zones for Riyadh, Jeddah, Makkah and Madinah. Applications and the official zone map are on REGA’s Saudi Properties platform.
Unchanged since October 2020 — 5% transaction taxProperty sales carry the 5% Real Estate Transaction Tax instead of 15% VAT. For eligible Saudi first-home buyers, the state covers the tax on the first SAR 1 million.

Who can invest

Your route depends on who you are

Eligibility is checked automatically on the Saudi Properties platform. These are the main cases.

Saudi citizens

Full freedom to buy

  • Buy anywhere, any type of property
  • First home: state covers RETT on the first SAR 1M (if eligible)
  • Access to bank and Sakani/REDF support
Residents in KSA

Iqama holders

  • Own inside the designated zones
  • Plus one residential property for personal use outside the zones (not in Makkah and Madinah)
  • Apply directly with your residency ID
  • Resident mortgages available from several banks
Non-residents

Buying from abroad

  • Ownership inside the designated zones only
  • Get a digital ID through a Saudi embassy or mission
  • Need a Saudi bank account and local phone number in your name
Companies

Foreign & mixed entities

  • Foreign companies register with the Ministry of Investment first and can own inside the zones
  • Saudi companies with foreign partners can also own outside the zones for business use or staff housing, with ministry approval (not in Makkah and Madinah)
  • Report ownership changes of 5%+ within 15 days

Makkah and Madinah: ownership is limited to Saudi companies and Muslim individuals. Jeddah has no such religious condition, but non-Saudi buyers must still check that the specific property lies in a permitted zone.

Investment options in Jeddah

Where the opportunities are

Each route has a different balance of income, growth and risk. We help you match it to your goal.

Ready apartments for rent

The most direct income play. Market listing data suggest an average gross yield of around 7–8% in Jeddah (indicative), with 2-bedroom units in Al-Rawdah and Al-Salamah in steady demand from families and professionals. Net yield is lower after service charges, vacancy and maintenance.

Off-plan projects

Entry at earlier prices, paid in stages. Only buy REGA-licensed projects: buyer payments go into a project escrow account, reservation deposits are capped at 5%, and delayed buyers have legal protection.

Villas & luxury residences

Better for capital growth and personal use than for high yield (villas typically yield less than apartments). A mortgage-free residential property worth SAR 4M+ can qualify the owner for Premium Residency.

Land

Long-term growth potential, but large undeveloped plots (5,000 m²+) can attract annual white land fees of 2.5%–10%. Check the plot’s zone and development plan first.

Real estate funds & REITs

Listed REITs on the Saudi Exchange offer property exposure from small amounts, with no property management. Returns follow the market and fund performance.

Commercial & mixed-use

Shops, offices and showrooms can offer higher yields but depend more on location, tenant quality and lease length. Best for experienced investors.

Step by step

How buying works with Dashen

From first call to rental income — what happens, who does it, and when.

Goal & budget

Free consultation: income or growth, time horizon, cash or finance. We give you a realistic budget range, including all costs.

Eligibility check

For non-Saudis we check your status and the property’s zone on the Saudi Properties platform (call centre 920017183) before you commit.

Shortlist & due diligence

We verify the title deed, the off-plan licence where relevant, and request an accredited (Taqeem) valuation and rental comparables.

Financing

We compare bank offers. In 2026, resident home-finance rates have been quoted around 4.1%–5% at major banks; your offer depends on income and profile.

Contract & transfer

Sale contract, payment of 5% RETT and electronic transfer of the title deed. Non-Saudi purchases are registered in the national Real Estate Registry.

Rent & manage

We find tenants, register the lease on Ejar (required), and can manage collection and maintenance so the property runs without you.

Cost estimator

What will you really pay?

A quick estimate of the main purchase costs. Final figures depend on your contract, bank and status.

Real Estate Transaction Tax (5%)
Brokerage (up to 2.5%)
Estimated total cost
Estimated yearly rent (gross)
Excludes valuation, bank and service fees, and any VAT on brokerage. Non-Saudi owners pay a 2% REGA fee when they later sell in Jeddah. This is an estimate, not tax or financial advice.

Honest view

Risks to weigh before you buy

Gross is not net

Advertised yields are before service charges, vacancy, maintenance and management. Plan for a lower net figure.

Zone & eligibility

For non-Saudis, a property outside a designated zone may not be purchasable. Always check the official map before paying anything.

Off-plan delivery

Only buy licensed projects with escrow, and read the delivery date, penalty and handover terms carefully.

Financing costs

Saudi rates follow US rates because of the riyal peg. A change in rates changes your monthly payment and return.

Exit & liquidity

Property takes time to sell. Factor in the 5% RETT on the sale (usually borne by the buyer, by agreement) and, for non-Saudis, the 2% REGA disposal fee.

Rules are still new

The 2026 framework is recent and details can be updated. Giving false information to obtain ownership can lead to a fine of up to 5% of the value (max SAR 10M) and a forced sale. We confirm the current position on each deal.

Read more

Investor guides

Can foreigners buy property in Saudi Arabia?The 2026 ownership law, explained Premium Residency through propertyHow the SAR 4M owner route works Buying property in Jeddah from abroadSteps for overseas buyers Villa, community or apartment?Choosing the right Jeddah investment

Ready to look at real numbers?

Tell us your budget and goal — we will send matching opportunities with a realistic analysis.

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