Saudi Arabia’s real estate and construction sectors—already experiencing rapid growth—are poised for a new wave of expansion following the implementation of new laws permitting foreign property ownership. This legal shift is expected to attract not just international investors, but also leading developers from the UAE and wider Gulf region, signaling a transformative phase for the Kingdom’s property market.
🏗️ UAE Developers Set to Capitalize
With the doors now officially open, top Gulf developers such as Emaar and Damac, who already have a presence in Saudi Arabia, are expected to ramp up activity. According to industry insiders, several more UAE-based real estate giants are preparing to enter the Saudi market.
A recent case highlighting this momentum is the launch of the Trump Tower in Jeddah, developed by Dar Global. The project garnered significant investor attention, serving as a strong indicator of foreign appetite for Saudi real estate—particularly in iconic, branded developments. A similar Trump-branded project is expected to launch in Dubai soon.
“Saudi Arabia has now become a credible and competitive global investment destination—not only for local or Gulf-based investors,” said a developer familiar with the market shift. “The success of the Trump Tower project made that crystal clear.”
📜 Legal Reforms and Market Impact
The most recent legal milestone—granting foreign nationals the right to purchase property in Saudi Arabia—marks a watershed moment for the Kingdom’s real estate policy. This follows an earlier move in 2024 to increase the White Land Tax from 2.5% to 10%, designed to discourage the hoarding of undeveloped urban plots and push landowners toward development.
With housing demand remaining strong and projected to continue regardless of market fluctuations, these policy changes are aimed at unlocking supply and accelerating the pace of construction.
📈 Rising Land Values: A Developer’s Market
Land prices across key Saudi cities and giga-project corridors are already reflecting this spike in interest:
- Riyadh:
- King Abdullah Financial District (KAFD) and New Murabba zones are witnessing prices of SAR 6,000–8,000/m² (approx. AED 585–780/sq ft).
- Diriyah & Wadi Safar:
- Strategic plots range from SAR 4,000–5,500/m² (AED 390–530/sq ft).
- Red Sea Coast (Amaala & The Red Sea Project):
- Resort-zoned beachfront parcels have surged over 40% in value in just 18 months, with current rates at SAR 3,500–4,500/m² (AED 340–440/sq ft).
“The increase in land values is especially noticeable in strategic urban zones such as Riyadh, Jeddah, and around giga-projects like Neom and Diriyah,” said Saad Hussain, CEO of Alaia Developments.
“These spikes are a direct result of the growing interest from international developers and Saudi Arabia’s Vision 2030 urban development initiatives.”
Conclusion: A New Investment Frontier
With clear legal frameworks in place and visionary projects unfolding at scale, Saudi Arabia is rapidly emerging as the Gulf’s next real estate powerhouse. UAE developers and global investors alike are now positioning themselves to tap into what is being called one of the most promising property markets in the region—fuelled by mega-infrastructure, lifestyle-led urban planning, and strategic regulatory reforms.
