Guides
How to Buy Off-Plan Property in Saudi Arabia: Step-by-Step Guide
Buying off-plan property in Saudi Arabia — purchasing a home before it is built — is how most units in the Kingdom’s new master-planned communities are sold. Done right, it means lower entry prices, staged payments, and first pick of units in projects like ROSHN’s SEDRA in Riyadh. This guide walks through the full process, the protections that exist, and the costs to budget for.
Why buy off-plan in Saudi Arabia?
- Lower entry price. Developers price early phases below expected completion value to fund construction and reward early buyers.
- Staged payment plans. Instead of paying 100% upfront, you pay a deposit and instalments tied to construction milestones — often with a large final payment at handover.
- New supply where demand is. Vision 2030 projects are concentrated in Riyadh, Jeddah, and the giga-projects (NEOM, Diriyah, Qiddiya), where resale stock is limited and population growth is strongest.
- Choice of units. Early buyers choose plots, floors, and layouts before the best units go.
The trade-off is time and delivery risk: you wait one to four years for handover, and you rely on the developer finishing the project. That is why Saudi Arabia’s escrow system matters.
The Wafi licence: your main protection
Off-plan sales in Saudi Arabia are regulated through the Wafi programme (“Off-Plan Sales and Rent Committee”) under the Real Estate General Authority (REGA). A Wafi licence means:
- The project and developer have been vetted and approved to sell off-plan.
- Buyer payments go into a project escrow account, not the developer’s pocket.
- Funds are released to the developer against certified construction progress.
- The project is monitored through to completion.
Rule number one: never pay for an off-plan unit in a project without a valid Wafi licence. You can verify a project’s licence status through the Wafi/REGA channels before reserving.
Step-by-step: the off-plan buying process
1. Set your budget and financing
Decide whether you are paying cash through the payment plan or financing. Saudi banks offer off-plan mortgage products, and Saudi nationals may qualify for subsidised financing through the Sakani programme. Foreign buyers should confirm financing eligibility early — bank criteria for non-Saudis are stricter.
2. Confirm you can own where you’re buying
Since January 2026, foreigners can buy in designated ownership zones under the new foreign ownership law. Riyadh and Jeddah are open within defined zones rather than city-wide, and Makkah and Madinah carry special restrictions. Read our full foreign ownership guide if you are not a Saudi citizen.
3. Shortlist projects and vet the developer
Compare current off-plan projects on location, price per square metre, payment plan, and handover date. Then vet the developer: delivery track record, build quality in completed phases, and scale. Established names like ROSHN (PIF-owned) carry lower delivery risk than first-time developers.
4. Reserve your unit
You’ll typically sign a reservation form and pay a booking deposit of 5–10%. Confirm in writing what happens to the deposit if you fail final checks or financing falls through.
5. Sign the sale contract
The off-plan sale agreement sets out the unit specification, payment schedule, handover date, compensation for delays, and the defects liability period. Key items to check:
| Contract item | What to look for |
|---|---|
| Payment schedule | Milestone-linked, not date-linked, where possible |
| Handover date | A stated date plus the permitted grace period |
| Delay compensation | Penalty or exit right if the project runs late |
| Specification | Finishes, appliances, and parking documented in writing |
| Escrow account | Payments made to the project escrow account only |
6. Pay instalments as construction progresses
Payments follow the agreed schedule. Keep every receipt and pay only into the escrow account named in the contract.
7. Handover and registration
At completion you inspect the unit (snagging), the developer fixes defects, and ownership is registered in your name through the Saudi real estate registry. Budget for the 5% Real Estate Transaction Tax (RETT) where it applies, plus any agency fees.
Costs to budget beyond the price
- RETT: 5% of the transaction value (exemptions apply for qualifying Saudi first-home buyers).
- Agency fees: commonly around 2.5% if a broker is involved (often paid by the seller side on off-plan, but confirm).
- Financing costs: bank arrangement fees and profit rates if using a mortgage.
- Service charges: annual community/maintenance fees once you own the unit — ask for the current rate per square metre before you buy.
Common mistakes to avoid
- Paying outside escrow. If money is going anywhere other than the licensed project escrow account, walk away.
- Buying on renders alone. Visit completed phases or the developer’s earlier projects.
- Ignoring the master plan. A great unit next to a future highway interchange or against a service area is a resale problem.
- Stretching to the handover payment. Many plans back-load 30–40% at handover — make sure that money will actually be there.
- Skipping the ownership-zone check as a foreign buyer — confirm the project sits inside a designated zone before reserving.
Where to start
Browse our off-plan project pages for current launches, check the area guides to compare locations, and read the developer profiles before you commit. If you’re a foreign buyer, start with the 2026 foreign ownership rules.
Frequently Asked Questions
Is buying off-plan property safe in Saudi Arabia?
Off-plan sales in Saudi Arabia are regulated through the Wafi programme under the Real Estate General Authority (REGA). Licensed projects must hold buyer payments in escrow accounts released to the developer against construction milestones, which significantly reduces the risk of losing your money if a project stalls. Always confirm a project holds a valid Wafi licence before paying anything.
Can foreigners buy off-plan property in Saudi Arabia?
Yes. Since January 2026, the Law of Real Estate Ownership by Non-Saudis allows foreigners to buy property in designated zones, and foreign residents can own a residential unit under the framework. Ownership in Makkah and Madinah remains restricted. Check whether the specific project sits inside a designated ownership zone before reserving.
What deposit do I need for an off-plan property in Saudi Arabia?
Booking deposits typically range from 5% to 10% of the purchase price, followed by staged payments linked to construction progress. Exact plans vary by developer and project — some back-load 40% or more to handover.
Do off-plan buyers pay tax in Saudi Arabia?
Saudi Arabia levies a 5% Real Estate Transaction Tax (RETT) on property transfers, though qualifying first-home Saudi buyers receive exemptions up to a threshold. There is no annual property tax on residential homes. Budget also for agency and registration costs where applicable.