Where to Invest in Saudi Real Estate? Best Cities for High Returns
In recent years, Saudi Arabia has emerged as one of the region's most promising real estate markets, offering lucrative investment opportunities. With Vision 2030 driving massive developments and lifestyle-focused urban projects, the Kingdom and its property landscape are transforming rapidly. But with all this growth and transformation, one key question remains: where should you start your real estate investment in Saudi Arabia? That’s what you are going to learn in this blog.
We’ve broken down everything you need to know about investing in the KSA, from the top cities delivering strong ROIs to the key reforms making the market more investor-friendly than ever before. And with DarGlobal, you’re not just witnessing this change—you can be part of it. But first, let’s understand why you should invest in Saudi real estate.
Why Invest in Saudi Real Estate?
Saudi Arabia’s real estate market is rapidly emerging as one of the most dynamic investment landscapes in the region. With the real estate market expected to reach a value of US$2.31 trillion in 2025, investors are witnessing an unprecedented opportunity to participate in a transformative journey.
This growth is not just driven by demand for housing or commercial spaces, it’s backed by a broader strategy aimed at economic diversification and global investor participation. As KSA opens its doors wider to foreign ownership, the sector is increasingly positioned as a secure and future-forward asset class.
Key Factors Driving Real Estate Investment in Saudi Arabia
Saudi Arabia's real estate sector is transforming rapidly, attracting local and international investors. The kingdom offers promising opportunities with a dynamic economy, ongoing reforms, and ambitious development plans. Key factors fueling this growth include:
1. Economic Growth and Stability
The Kingdom of Saudi Arabia is one of the largest and fastest-growing economies in the region. Its stable financial system, strong GDP performance, and low inflation make it an attractive and secure environment for investors looking to build secure wealth through the real estate sector.
2. Vision 2030 Transformation
Vision 2030 is a national roadmap reshaping the Saudi economy. With a major focus on real estate, infrastructure, and urban development, the initiative is unlocking new opportunities across residential, commercial, and tourism sectors, positioning the KSA as a global investment destination.
3. Mega Projects & Giga-Cities
From NEOM and The Line to Qiddiya and the Red Sea Project, the Kingdom of Saudi Arabia invests in visionary developments that promise high returns. These massive projects create demand for real estate in and around new cities designed for future generations.
4. Rise in Tourism & Hospitality
With ambitious goals to welcome 150 million tourists annually by 2030, Saudi Arabia is rapidly expanding its tourism infrastructure. This surge is driving demand for hotels, resorts, vacation homes, and short-term rentals—creating fresh opportunities for real estate investors.
5. Legal & Regulatory Reforms
Saudi Arabia has introduced investor-friendly reforms, including allowing foreign ownership, easing property transaction processes, and improving transparency. These changes make it easier and safer for both local and international investors to enter and thrive in the real estate market.
Best Cities for High Returns
KSA's urban landscape is evolving quickly, with several cities emerging as prime hubs for Saudi real estate investment. These locations benefit from strategic development plans, strong infrastructure, and growing demand for commercial and residential spaces. Here are the best locations for high returns;
1. Riyadh
As the Kingdom’s capital, Riyadh is the heart of business and innovation. With mega-projects like Neptune, Interiors By Mouawad by DarGlobal, the city offers strong rental yields and long-term appreciation. Its rapid growth, strategic reforms, and rising demand make it a top choice to invest in Riyadh.
2. Jeddah
Jeddah, the gateway to the mesmerizing Red Sea, is booming with projects like Trump Tower Jeddah by DarGlobal, reflecting its luxury market potential. As tourism rises and its role as a trade hub strengthens, those looking to invest in Jeddah can expect strong returns in both the residential and hospitality sectors.
3. NEOM
NEOM is Saudi Arabia’s boldest vision, a $500 billion futuristic city focused on innovation, sustainability, and tech-driven living. Still, in early development, it offers early investors a chance to get ahead of the curve with long-term returns as the city evolves into a global model of urban living.
4. Dammam & Al Khobar
Located in the Eastern Province, these twin cities are key to Saudi’s oil economy and home to a rising expat community. Their commercial importance, modern infrastructure, and waterfront projects create a high demand for residential and business properties, offering steady returns and capital growth.
5. Makkah And Madinah
As the two holiest cities, Makkah and Madinah see millions of visitors annually, driving consistent demand for hospitality and short-term residential rentals. With increased investment and growing religious tourism, both cities offer a unique blend of spiritual significance and profitable real estate options.
Types of Properties to Consider for Investment
Whether you're a seasoned investor or exploring new opportunities, Saudi Arabia offers a diverse property landscape. From sleek city apartments to untouched white land, each type of property comes with its own potential for growth, rental income, and capital gain. Here are some of the key properties to consider before you invest in Saudi;
1. Residential Apartments
Apartments in urban centers like Riyadh and Jeddah are consistently in demand, especially among young professionals and expats. With strong rental yields and easy management, they make a smart entry point for investors seeking steady income and long-term value appreciation.
2. Villas and Townhouses
Perfect for growing families and high-end tenants, villas and townhouses offer space, privacy, and lifestyle appeal. These properties tend to appreciate well in gated communities and are often found in master-planned developments, attracting premium rents and delivering solid long-term value.
3. Commercial Spaces
Investing in office units, retail outlets, or mixed-use buildings can provide strong, reliable income. These spaces benefit from long-term leases with business tenants and are especially profitable in business districts, shopping hubs, or areas undergoing rapid development and urban expansion.
4. White Land
Buying undeveloped land—known as white land—offers long-term potential for high returns. As cities expand, this land can appreciate significantly or be developed for residential or commercial use. It’s a strategic choice for investors willing to wait for big future gains.
Government Reforms and Investment Incentives
From regulatory improvements to financial incentives, the evolving policy landscape in KSA makes the real estate sector increasingly accessible and appealing to global and regional investors. To give you a better idea, here are the new and vital government reforms and investment incentives;
1. New Investment Law of 2024
Introduced in August 2024 and effective February 2025, the new Investment Law replaces the 2000 Foreign Investment Law. It simplifies procedures by replacing licensing with registration and guarantees equal treatment for foreign and local investors, making Saudi Arabia’s real estate market more transparent, accessible, and globally competitive.
2. Opening of Mecca and Medina to Foreign Investment
In a groundbreaking reform, foreign investors can now participate in listed companies that own real estate in Mecca and Medina. This January 2025 update enhances capital market access and unlocks new investment avenues in two of the world’s most visited religious destinations, boosting growth in the hospitality and residential sectors.
3. Real Estate Investment Funds (REIFs)
Managed and regulated by Saudi Arabia’s Capital Market Authority, Real Estate Investment Funds (REIFs) provide a structured, low-risk entry point into the Kingdom’s real estate sector. They allow local and foreign investors to pool capital, diversify portfolios, and participate in large-scale developments without the need for direct property ownership.
4. Tax Reforms and Incentives
To boost property ownership and investment in Saudi Arabia, the government introduced major tax reforms, i.e., a 5% Real Estate Transaction Tax (RETT) replaces the previous 15% VAT on property deals, and first-time Saudi homebuyers enjoy full exemptions from these. These changes aim to lower barriers, encourage investment, and expand market participation.
Conclusion
Saudi Arabia’s real estate market is no longer just a regional hotspot, it’s a global investment opportunity. Whether you're drawn to the energy of Riyadh, the coastal charm of Jeddah, or the futuristic promise of NEOM, each city presents a unique value proposition for investors.
And this is where we come in. At DarGlobal, we’re not just observing this transformation, we’re shaping it. With a portfolio that contains iconic projects like Neptune, Interiors by Mouawad in Riyadh and Trump Tower Jeddah, we offer you the chance to be part of Saudi Arabia’s next chapter. Ready to take the next step? Let DarGlobal guide your journey into Saudi Arabia’s most high-potential real estate markets—because investing here means investing in Saudi’s future.