--- title: Government Policies Impacting Saudi Real Estate Investments description: Saudi Real Estate Investments Policies raised homeownership to 62% by 2020, driving growth and access under Vision 2030 reforms image: https://getstake.com/hubfs/WEBP_Image_2026/Riyadh%20(1).webp --- [![Stake logo](https://getstake.com/hubfs/Imported%20images/Stake%20logo.svg) ](https://getstake.com/?hsLang=en) [ Login ](https://app.getstake.com/login) [ Sign up ](https://app.getstake.com/onboarding/signup/create-account) [ Properties - Invest in premium properties from AED 500 - Diversify your portfolio with fractional shares - Monitor performance and receive dividends ](https://getstake.com/properties?hsLang=en) [ Funds - Access institutional-grade real estate funds - Build a diversified fund portfolio - Earn attractive yields with quarterly distributions ](https://getstake.com/saudi-arabia?hsLang=en) [![svgviewer-output](https://getstake.com/hubfs/svgviewer-output.svg) - Invest fully in off-plan or ready properties - Manage, sell and earn rent on your property - Track your investments in real-time ](https://getstake.com/stakeone?hsLang=en) © 2026 Stake. All rights reserved. Stake for Android Stake for iOS [![reward](https://getstake.com/hubfs/reward.png) Tiers & Rewards Earn more as you move up Stake’s investor tiers ](https://getstake.com/tiers-and-rewards?hsLang=en) ![visa-programs](https://getstake.com/hubfs/visa-programs.png) Visa programs [Golden Visa A unique UAE Golden Visa

for real estate investors ](https://getstake.com/golden-visa?hsLang=en) [Retirement Visa Invest from anywhere in the world to secure your Retirement Visa ](https://getstake.com/retirement-visa?hsLang=en) © 2026 Stake. All rights reserved. Stake for Android Stake for iOS [![rn_image_picker_lib_temp_34cccc2b-c986-4b75-90a4-782875bc4cda](https://getstake.com/hubfs/rn_image_picker_lib_temp_34cccc2b-c986-4b75-90a4-782875bc4cda.png) Explore expert resources to help you make informed investment decisions. ![SA-Founders](https://getstake.com/hubfs/SA-Founders.png) ](https://getstake.com/content-hub/blog/articles/tag/stake-academy) ![getting-started](https://getstake.com/hubfs/getting-started.png) GETTING STARTED [ Stake 101 Understand how Stake works and what makes it different ](https://getstake.com/content-hub/blog/articles/tag/stake-101) [ How to guides Step-by-step instructions to help you get started ](https://getstake.com/content-hub/blog/articles/tag/how-to-guides) [ FAQs Find answers to the most common questions ](https://help.getstake.com/en/) [ Glossary Learn key terms and concepts related to real estate investing ](https://help.getstake.com/en/articles/8245926-glossary) ![learn](https://getstake.com/hubfs/learn.png) LEARN [ Investing basics Explore the fundamentals of property investing ](https://getstake.com/content-hub/blog/articles/tag/investing-basics) [ Neighbourhood guides Discover the best areas to invest in with insights and data ](https://getstake.com/content-hub/blog/articles/tag/neighbourhood-guides) ![the-latest](https://getstake.com/hubfs/the-latest.png) THE LATEST [ Market insights Stay up to date with trends and expert analysis ](https://getstake.com/content-hub/blog/articles/tag/market-insights) [ Webinars Watch expert-led sessions on property investing ](https://getstake.com/webinars?hsLang=en) [ New article ✨ StakeOne: See the real numbers before you buy ](https://getstake.com/content-hub/blog/articles/stakeone-see-the-real-numbers-before-you-buy?hsLang=en) [ New article ✨ Is Fractional real estate investing safe? ](https://getstake.com/content-hub/blog/articles/is-fractional-real-estate-investing-safe?hsLang=en) © 2026 Stake. All rights reserved. Stake for Android Stake for iOS - - [Articles](https://getstake.com/content-hub/blog/articles) - Government Policies Impacting Saudi Real Estate Investments [![Learn icon](https://getstake.com/hubfs/Learn%20icon.svg) Market Insights ](https://getstake.com/content-hub/blog/articles/topic/market-insights?hsLang=en) 5 min read # Government Policies Impacting Saudi Real Estate Investments Date 20 March 2025 ![Stake team](https://getstake.com/hs-fs/hubfs/Stake_Colour_RGB_1x1%20copy.jpg?width=50&height=50&name=Stake_Colour_RGB_1x1%20copy.jpg) Written by Stake team ![Government Policies Impacting Saudi Real Estate Investments](https://getstake.com/hs-fs/hubfs/WEBP_Image_2026/Riyadh%20(1).webp?width=800&height=450&name=Riyadh%20(1).webp) ![Table icon](https://getstake.com/hubfs/Table%20icon.svg)Table of contents Key takeaways 1 Saudi Arabia cut mortgage down payments from 30% to 5% and launched Sakani, boosting homeownership to 62% by 2020. 2 Reforms now allow foreign ownership in designated zones and access to REIFs, opening new doors for international investors. 3 Tax exemptions and rental market upgrades like the Ejar system make Saudi real estate more affordable, transparent, and investor-friendly. Saudi Arabia’s real estate market is undergoing a transformation. Policies and regulations [introduced under Vision 2030](https://getstake.com/content-hub/blog/articles/saudi-arabia-vision-2030/?hsLang=en) are reshaping the sector, making homeownership more accessible and attracting both local and foreign investors. But how did we get here? Let’s break it down step by step. ## The Housing Challenge and the First Steps Toward Change (2017-2018) For two decades, homeownership rates in Saudi Arabia stagnated between 40% and 50% (PwC, 2024). In 2017, around 1.6 million Saudis were on government housing waitlists, struggling with high mortgage rates and long delays in securing interest-free loans (PwC, 2024). To tackle this, the government launched multiple initiatives to improve affordability, expand financing options, and increase housing supply. One of the most impactful reforms was the **reduction of down payment requirements**. Before 2017, homebuyers needed a 30% down payment to secure a mortgage; an entry barrier for many Saudi families. The Saudi Arabian Monetary Authority (SAMA) reduced this to **5% for first-time homebuyers**, making homeownership more accessible (PwC, 2024). The **Saudi Real Estate Refinance Company (SRC)** was also established in 2017 under the Public Investment Fund (PIF) to inject liquidity into the mortgage market. By the end of 2020, SRC’s loan portfolio reached **SAR 6.5 billion**, and the company planned to refinance **20% of the total residential mortgage market by 2025** (PwC, 2024). ## The 2018 Housing Programme: Reshaping Homeownership Building on these efforts, Saudi Arabia launched the **Housing Programme** in 2018 with a goal to increase homeownership to **70% by 2030**. This program overhauled the system, shifting from slow, government-led processes to a more dynamic, private-sector-driven approach. Key initiatives included: - **Tax reforms** to encourage home purchases. - **Reduced down payments** to make mortgages more accessible. - **New mortgage products** that widened financing options. - **A stronger rental market**, providing alternatives for those not yet ready to buy. - **Foreign ownership reforms**, allowing non-Saudi investors to own properties in designated zones, expanding investment opportunities. One of the program’s biggest successes was the **Sakani Programme**, launched to provide government-backed financing solutions. By 2021, Sakani had helped over **1.2 million Saudi families** purchase homes, significantly boosting ownership rates (PwC, 2024). As a result, homeownership in Saudi Arabia rose to **62% in 2020**, with a target of **70% by 2030** (PwC, 2024). ## Foreign Investment Reforms: A New Era Historically, foreign ownership in Saudi real estate was highly restricted. However, as part of [Vision 2030](https://blog.getstake.com/the-birth-of-saudi-vision-2030/), the government has actively eased regulations to attract international investors. One of the most notable changes was the introduction of Real Estate Investment Funds (REIFs) under the Capital Market Authority (CMA). These funds allow foreign and local investors to participate in Saudi real estate projects without direct property ownership, reducing risk and increasing market accessibility (PwC, 2024). Additionally, the government opened up select real estate zones to foreign ownership, particularly in economic cities and special development zones. This policy shift aligns with global best practices, making Saudi Arabia more competitive with real estate hubs like Dubai and Singapore (Insights, 2024). ## Tax Reforms and Market Incentives The Saudi government has also used tax policy as a tool to stimulate the real estate sector. One of the most impactful measures was the **exemption of first-time homebuyers from the 15% VAT** on property transactions, making housing more affordable (PwC, 2024). Instead, a **5% real estate transaction tax (RETT)** was introduced to ensure a more balanced tax structure while still promoting investment. In parallel, the government implemented **Zakat and income tax exemptions** on certain real estate transactions to further incentivize property purchases and streamline the investment process for developers (Insights, 2024). ## A Growing Rental Market Not all real estate investment in Saudi Arabia is focused on ownership. The government has made strategic moves to strengthen the rental market as well. The introduction of the **Ejar system**, a government-backed electronic leasing platform, has improved transparency and regulation in the rental sector, providing a safer environment for both landlords and tenants (PwC, 2024). Additionally, new mortgage-backed rental products have been introduced, allowing investors to purchase rental properties with financing tailored for leasing rather than resale. These measures create a more structured and investor-friendly rental market (PwC, 2024). ## A Booming Market and Future Outlook Saudi Arabia’s real estate market now plays a major role in the national economy, contributing **7% to the GDP** and generating over **40,000 jobs** (PwC, 2024). As the country’s population grows, so does housing demand, requiring **1.2 million new homes by 2030**. With Vision 2030 pushing for further expansion, private sector involvement will increase, ensuring that the sector remains resilient across economic cycles. Interested in tracking Vision 2030 goals? [Click here for more](https://getstake.com/content-hub/blog/articles/vision-2030-goals/?hsLang=en) The government aims to raise the **real estate sector’s GDP contribution to 10%** and boost the mortgage market’s reach through further refinancing initiatives (PwC, 2024). ### **Why It Matters** Saudi Arabia’s real estate reforms are not just about housing but also about economic growth, job creation, and financial accessibility. The Kingdom’s commitment to making property investment easier, both for locals and foreign investors, is setting the stage for long-term stability and prosperity. For investors, these policies mean a more dynamic and structured market with growing opportunities. For Saudi families, it means homeownership is no longer just a dream—it’s an achievable goal. ***References:*** - [https://insightss.co/blogs/regulatory-landscape-of-real-estate-investing-in-saudi-arabi/](https://insightss.co/blogs/regulatory-landscape-of-real-estate-investing-in-saudi-arabi/) - [https://ahysp.com/impact-of-vision-2030-on-real-estate-investment/?utm_source=mondaq&utm_medium=syndication&utm_content=articleoriginal&utm_campaign=article](https://ahysp.com/impact-of-vision-2030-on-real-estate-investment/?utm_source=mondaq&utm_medium=syndication&utm_content=articleoriginal&utm_campaign=article) - [https://www.pwc.com/m1/en/publications/transforming-the-housing-sector-in-saudi-arabia.html](https://www.pwc.com/m1/en/publications/transforming-the-housing-sector-in-saudi-arabia.html) ![Stake_Colour_RGB_1x1 copy](https://getstake.com/hs-fs/hubfs/Stake_Colour_RGB_1x1%20copy.jpg?width=227&height=295&name=Stake_Colour_RGB_1x1%20copy.jpg) About the author The Stake Team is a trusted group of real estate and investment experts committed to delivering in-depth, data-driven insights for property investors in the UAE, Saudi Arabia, and beyond. Backed by years of industry experience, our team simplifies complex market trends, investment strategies, and more to help you make smarter decisions. Stay informed with Stake. The Stake team [ Back to articles ](https://getstake.com/content-hub/blog/articles) Scroll - - - - - [mailto:?body=https%3A%2F%2Fgetstake.com%2Fcontent-hub%2Fblog%2Farticles%2Fsaudi-real-estate-investments-policies%2F](mailto:?body=https%3A%2F%2Fgetstake.com%2Fcontent-hub%2Fblog%2Farticles%2Fsaudi-real-estate-investments-policies%2F) - ## Related Articles [![Can foreigners buy property in Saudi Arabia? 2026 law explained](https://getstake.com/hs-fs/hubfs/WEBP_Image_2026/Screenshot%202026-02-04%20at%201.49.51%20PM.webp?) ](https://getstake.com/content-hub/blog/articles/can-foreigners-buy-property-in-saudi-arabia-2026-law-explained?hsLang=en) 4 min read ### [ Can foreigners buy property in Saudi Arabia? 2026 law explained ](https://getstake.com/content-hub/blog/articles/can-foreigners-buy-property-in-saudi-arabia-2026-law-explained?hsLang=en) ![Stake team](https://getstake.com/hs-fs/hubfs/Stake_Colour_RGB_1x1%20copy.jpg?) Written by Stake team [![Inside the Stake Summit: The future of real estate](https://getstake.com/hs-fs/hubfs/WEBP_Image_2026/Screenshot%202025-11-26%20at%2010.59.50%20am.webp?) ](https://getstake.com/content-hub/blog/articles/inside-stakes-first-ever-summit-the-future-of-real-estate?hsLang=en) ![Learn icon](https://getstake.com/hubfs/Learn%20icon.svg) Stake 101 4 min read ### [ Inside the Stake Summit: The future of real estate ](https://getstake.com/content-hub/blog/articles/inside-stakes-first-ever-summit-the-future-of-real-estate?hsLang=en) ![Stake team](https://getstake.com/hs-fs/hubfs/Stake_Colour_RGB_1x1%20copy.jpg?) Written by Stake team [![Inspire Boulevard Fully Funded - Did You Get In?](https://getstake.com/hs-fs/hubfs/WEBP_Image_2026/image.webp?) ](https://getstake.com/content-hub/blog/articles/inspire-boulevard-fully-funded-did-you-get-in?hsLang=en) ![Learn icon](https://getstake.com/hubfs/Learn%20icon.svg) Market Insights 1 min read ### [ Inspire Boulevard Fully Funded - Did You Get In? ](https://getstake.com/content-hub/blog/articles/inspire-boulevard-fully-funded-did-you-get-in?hsLang=en) ![Stake team](https://getstake.com/hs-fs/hubfs/Stake_Colour_RGB_1x1%20copy.jpg?) Written by Stake team ```json { "@context" : "https://schema.org", "@type" : "Article", "author" : [ { "@type" : "Person", "name" : "Stake team", "url" : "https://getstake.com/blog/articles/author/stake-team" } ], "dateModified" : "2024-10-01T12:00:00+0000", "datePublished" : "Mar 20, 2025 12:00:00 AM", "headline" : "Government Policies Impacting Saudi Real Estate Investments", "image" : [ "https://145390954.fs1.hubspotusercontent-eu1.net/hubfs/145390954/WEBP_Image_2026/Riyadh%20%281%29.webp" ], "mainEntityOfPage" : { "@id" : "https://getstake.comhttps://getstake.com/content-hub/blog/articles/saudi-real-estate-investments-policies/", "@type" : "Article" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://getstake.com/images/getstake-logo.png" }, "name" : "GetStake" } } ``` ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Stake team", "url" : "https://getstake.com/content-hub/blog/articles/author/stake-team" }, "dateModified" : "2026-02-07T18:02:55.394Z", "datePublished" : "2025-03-20T04:00:00.000Z", "headline" : "Government Policies Impacting Saudi Real Estate Investments", "image" : [ "https://getstake.com/hubfs/WEBP_Image_2026/Riyadh%20(1).webp" ], "mainEntityOfPage" : { "@id" : "https://getstake.com/content-hub/blog/articles/saudi-real-estate-investments-policies/", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject" } } } ```