Before you compare prices on any real estate projects in Saudi Arabia, run six checks in this order: the project's Wafi licence, its dedicated escrow account, the title deed for the land, the broker's Fal licence, the real estate transaction tax, and your own eligibility to buy. A project that clears all six checks is not guaranteed to succeed, but it has removed the most common reasons buyers lose money when they pay before a building exists.
The fifth check alone can move your budget by SAR 50,000. A unit priced at SAR 1,500,000 carries SAR 25,000 of transaction tax for a Saudi citizen buying a first home, and SAR 75,000 for a buyer the support does not cover. The full calculation comes below.
The market for real estate projects in Saudi Arabia works differently from most because selling before construction is a regulated activity with its own licensing body and a separate bank account for every project. Buyers who know these tools ask for the right documents on the first call. Buyers who do not tend to learn about them after the first payment.
If you are reading from outside the Kingdom, the sixth check matters most. A new law on property ownership by non-Saudis took effect in January 2026, and it changes who can buy what, and where.
Saudi regulation defines a real estate project in the off-plan context as a project intended for development in order to sell or lease developed land or property units before they are completed. In everyday use the phrase covers anything a developer offers for sale, finished or not.
The type you choose decides what you verify first:
| Type | What you buy | What to verify first |
|---|---|---|
| Ready unit | A completed unit you can take over | Title deed, unit condition, transfer readiness |
| Off-plan unit (البيع على الخارطة) | A unit still under construction | Licence, escrow account, payment schedule |
| Developed land | A plot with approved layout or services | Title deed, approved plan, services |
| Income property | A building or unit with live leases | Lease terms, tenant status, income records |
Off-plan is the riskiest row because you pay before the asset exists. Most of the checks below target it, though several (deed, tax, broker licence, eligibility) apply to every row.
Answer in order and stop at the first yes:
If none of the four fits, your goal is not clear yet. Settle that before you visit any site.
Wafi is the programme that licenses off-plan sales and leasing. Its scope is wide. When its working rules were approved, it was described as covering any property units offered, marketed or sold before construction is complete, whatever their purpose or development style.
In practice, an advertisement for real estate projects that are not finished should have a licence behind it. Ask the developer or broker for the licence number in writing, then confirm it with Wafi rather than relying on the advertisement. A developer who hesitates to give the number on any of the real estate projects you ask about has answered your question already.
Unlicensed marketing of real estate projects does occur. An opinion piece in Al Arabiya on off-plan sales described contractors marketing real estate projects without the required licence or escrow account. Glossy brochures prove nothing.
If the licence does not appear after you ask, follow this sequence:
An escrow account is a bank account held for one project, where buyers' payments are deposited. The off-plan sales and leasing regulation issued by Council of Ministers resolution defines it that way and requires a developer to hold an escrow account agreement with a bank licensed in the Kingdom.
The benefit is direct: your payment does not go into the company's general account. Wafi has stated that each of the licensed real estate projects has a dedicated escrow account and continuous engineering supervision.
Release is tied to progress, not to a calendar. The programme approved methods for calculating construction quantities on licensed real estate projects. The developer prepares a bill of quantities and a table of relative weights, appoints an engineering consultant per project, and submits them to Wafi for approval. Those documents become the reference for paying the contractor from the escrow account.
A developer may also pay for the project's land from the account under conditions. Wafi announced mechanisms for paying the land value from escrow in two instalments: the first when collections reach 30 percent and the second at 75 percent, each with set limits.
Ask the developer of any of these real estate projects the following:
Specific questions have specific answers. Vague replies tell you something too.
Wafi's rules also cover a register of projects and inspection companies, so ask whether your project has an inspection firm tracking progress and who pays its fees.
Compare the share of the price you have paid with the certified completion. The gap is your exposure.
Hypothetical example: a unit priced at SAR 1,500,000. You have paid 40 percent, or SAR 600,000, and certified completion is 25 percent. The gap is 15 percentage points: (0.40 − 0.25) × 1,500,000 = SAR 225,000 paid ahead of construction.
That figure is not a loss. The escrow account protects deposited money. But it is a signal worth a question: why do my payments run ahead of the build by this much? A good answer comes from a schedule tied to construction stages. If the schedule follows fixed dates instead of milestones, ask to change it, or find out why it was set that way.
The regulation requires the developer to hold a valid title deed for the land being developed. Ask for the deed number and the registered owner's name, then compare it with the developer's company. If a different party owns the land, ask about the relationship: a partnership, development on the owner's behalf, or something else.
Also ask whether the land is recorded in the real estate registry and whether any lien or restriction is attached. Buyers who request full deed details before paying spare themselves a dispute after handover.
If you buy through a broker or a marketing platform, ask for the Fal licence. Ejar stated in 2025 that brokers cannot operate without a Fal licence, which is the document the Real Estate General Authority recognises for brokering deals and marketing property.
You can verify through the authority's electronic services or by calling the unified number 199011 that the platform gave for beneficiary services. Request the licence number in writing, as you do with the project licence number.
One distinction matters. A portal that lists real estate projects from several developers acts as a marketing intermediary, and the developer remains responsible for the licence and the escrow account. Ask about both, and do not settle for one.
The Zakat, Tax and Customs Authority applies real estate transaction tax at 5 percent. Its simplified guide to the tax presents it as the replacement for 15 percent VAT on property. The tax applies to completed, under-construction and off-plan property.
The procedure: register the disposition on the authority's real estate transactions portal before the transfer (ifrag, الإفراغ) or documentation. The seller remains liable to the authority, and the parties may agree who bears the cost.
One support changes the arithmetic. The state bears the 5 percent tax on up to SAR 1,000,000 of the purchase price of a Saudi citizen's first home, covering both ready and off-plan units, and the citizen pays the tax on the remainder. This is what Ajel reported from the authority's statement, and it applies to the citizen beneficiary.
The prices below are hypothetical and show the method only:
| Unit price (SAR) | Tax without support (5%) | Tax after first-home support | Difference |
|---|---|---|---|
| 900,000 | 45,000 | 0 | 45,000 |
| 1,500,000 | 75,000 | 25,000 | 50,000 |
| 2,400,000 | 120,000 | 70,000 | 50,000 |
For the middle row, the state covers 5 percent of 1,000,000, which is SAR 50,000, and the citizen pays 5 percent of 500,000, which is SAR 25,000. The effective rate on the full price is 25,000 ÷ 1,500,000 = 1.67 percent. In the third row it is 2.92 percent. Once the price passes SAR 1,000,000 the saving stays fixed at SAR 50,000, because the support is capped.
Put the tax in your budget from the start, and write down in the contract who bears it if the support does not apply to you. Check current rules with the authority. This content is educational and is not tax advice.
Many buyers work out the yield on real estate projects from the advertised price. Add the tax to the base instead. Hypothetical case: a unit at SAR 1,500,000 renting for SAR 90,000 a year.
The gap between the first and second figures is 0.29 percentage points. Maintenance and vacancy lower the net yield further. Use this method to compare two real estate projects on one basis, and remember that first-home support is for citizens buying a residence, so it rarely applies to an investment purchase.
Eligibility is part of the check, especially if you plan to buy real estate projects as a non-Saudi.
The Law of Real Estate Ownership by Non-Saudis took effect on 22 January 2026, according to the Real Estate General Authority's announcement. Applications go through the Saudi Properties portal, which accepts residents, non-residents and non-Saudi companies under defined controls.
What to know before you plan a purchase:
This is educational, and individual cases belong with the official portal or a qualified adviser.
The first five checks on real estate projects do not change, but a remote buyer depends more on written documents because there is no site visit. Before you reserve anything:
The fourth point protects against a situation that is hard to repair once it has happened.
Asking is not enough. You need to know which answers are acceptable:
| Check | Acceptable evidence | Not enough |
|---|---|---|
| Licence | The licence number, confirmed with Wafi | The word "licensed" in an advertisement |
| Escrow account | Bank name and agreement number | A promise that funds are "protected" |
| Title deed | Deed number and registered owner | A photo of land or a marketing plan |
| Broker | Fal licence, verified with the authority | A business card or social media profile |
| Tax | A written agreement on who pays | A spoken assurance that it is "on the seller" |
| Eligibility | The result from the official portal for non-Saudis | A broker's opinion that it is "possible" |
Treat this table as a decision tool, not a guarantee. If one row fails, pause until it is settled.
After the six checks you may still have two acceptable real estate projects. A weighted scorecard turns impressions into numbers you can review. Set the weights yourself before you see either project, so the offers do not shape your priorities. The weights must total 100.
The example is entirely hypothetical. Projects A and B score out of 10 on each criterion:
| Criterion | Weight | Project A | Project B |
|---|---|---|---|
| Licence and escrow | 25 | 9 | 9 |
| Title deed | 15 | 8 | 8 |
| Construction progress | 15 | 5 | 8 |
| Location and services | 20 | 7 | 6 |
| Payment schedule | 15 | 8 | 5 |
| Price per m² | 10 | 6 | 7 |
| Total out of 100 | 100 | 74.0 | 73.0 |
Each total is the sum of weight × score ÷ 10. Project A: 22.5 + 12.0 + 7.5 + 14.0 + 12.0 + 6.0 = 74.0. Project B: 22.5 + 12.0 + 12.0 + 12.0 + 7.5 + 7.0 = 73.0.
One point separates them, and that is the lesson. When totals are close, the criterion you weight most decides. If the payment schedule matters more than progress, raise its weight. If you want delivery soon, raise the progress weight. Rerun the sums. The scorecard does not choose for you, but it shows why you chose.
Compare real estate projects in SAR and per square metre, and define the area first: built-up or net. Example: a SAR 1,500,000 unit of 150 m² is SAR 10,000 per m². Another unit at SAR 1,420,000 and 132 m² is SAR 10,757.58 per m². The second is cheaper in total and about 7.6 percent dearer per square metre. If the first figure uses built-up area and the second net area, the comparison is invalid to begin with.
Send the same message to every project you compare and you will get answers you can line up side by side:
"Hello. I am enquiring about (project name) in (city). Please send the following in writing: the Wafi licence number, the escrow bank, the title deed number, the broker's Fal licence number, the payment schedule linked to construction stages, the area definition (built-up or net), and who bears the real estate transaction tax. Thank you."
The message is as long as it needs to be. A developer who answers it fully and promptly is showing you how the rest of the deal will go.
Financing a unit under construction differs from financing a finished one. The Aqar app blog notes that lenders use partial repayment or staged disbursement for off-plan units, with the cost tied to the amounts actually released to the developer. Profit rates vary by lender, tenor and support programmes, so do not rely on an old figure.
To see the effect of staged release, assume SAR 1,200,000 of financing at 5 percent a year (a rate chosen only for the arithmetic). If 30 percent, or SAR 360,000, has been released and stays outstanding for a year, the profit for that year is 360,000 × 5% = SAR 18,000. If the full amount had been released from day one, it would be 1,200,000 × 5% = SAR 60,000. The difference is SAR 42,000 in year one. The release schedule is part of your sums, not a technicality.
Ask the lender when instalments begin, with each release or at handover, whether the rate changes after handover, and confirm that the contract does not charge you for an amount not yet released.
These are practical rules from experience, not legal tests, but they help sort advertisements:
One sign does not prove bad faith. Two or three together justify delaying the decision.
There is no single answer. Buying direct removes a link and gives you a channel to the party responsible for handover. A broker can compare real estate projects from several developers in one place and save you research time. In both cases the conditions are the same: verify the broker's licence and the project's licence, and put every agreement in the contract rather than in a chat. If a broker offers a project from a developer you do not know, ask for the developer's name, commercial registration and a list of delivered projects, then compare it with what you find yourself. A serious broker does not mind these questions, since they protect the deal too.
Trusting the brochure. It says what its author wants. The contract and its annexes bind. Attach the specifications and drawings to the contract, because what is not written is hard to claim.
Paying a deposit before checking. Many disputes start with a small payment to "hold the unit" before anyone has seen the licence. Do the first four checks before any payment, however small.
Ignoring the transaction tax. It adds to the final cost and does not appear in the advertised price.
Mixing area definitions. See the per-metre example above.
Forgetting that a broker is not the developer. The broker markets; the developer carries the delivery obligation.
Comparing real estate projects at different stages. A project near completion carries less delivery risk but offers fewer options and usually a higher price. A project that has not started gives you flexibility in exchange for a longer wait. It is a trade-off between real estate projects at different stages, and you should know which side you are choosing.
For off-plan purchases, the sale ends at handover, and that is where most disputes are settled. Sign the handover record after inspection, not before, because your signature can be read as acceptance of the condition.
Inspect in three stages:
Bring an engineer or independent inspector for a large unit. The fee is small next to a hidden defect. Keep copies of the handover record, the contract and annexes, payment receipts and proof of the disposition registered on the tax portal. Those papers are your file if a dispute follows over any of the real estate projects you have bought.
They are units or land offered and sold before construction is finished. Wafi covers any unit offered, marketed or sold before completion, so these real estate projects need a licence and an escrow account.
Ask the developer for the licence number in writing and confirm it with Wafi. A number printed in an advertisement or brochure is not verification.
It is a bank account for one project that holds buyers' payments. Money is paid out to the contractor against a bill of quantities and progress approved through Wafi. Your payment does not enter the company's general account.
It is 5 percent of the value of the disposition. The state bears 5 percent on up to SAR 1,000,000 of a Saudi citizen's first home, and the citizen pays on the remainder. A unit at SAR 1,500,000 therefore carries SAR 25,000 after support.
Yes. It covers completed, under-construction and off-plan property according to published descriptions of the tax regulation.
The updated law took effect on 22 January 2026 and applications go through the Saudi Properties portal. What you can buy depends on the geographic scope and on your category, and ownership has no legal effect until it is registered in the real estate registry.
If you buy through a broker, yes. Brokers cannot lawfully operate without the licence, so verify it before paying anything.
Use both, with the area definition held constant. The total shows what you pay, and the per-metre price shows the difference between similar units. If the area definitions differ, the comparison is not valid.
The tax portal explains how to object to the tax and how to cancel a disposition registration, and refunds are governed by the applicable regulations. Check the portal before you transfer any amount, and do not rely on a broker's assurance.
The sequence that works for real estate projects in Saudi Arabia is: Wafi licence, escrow account, deed, broker licence, tax, eligibility. Prices come after. Start with what a document can prove (licence, account, deed), move to the arithmetic (tax and payments), and leave the comparison of designs and amenities for last. Good real estate projects survive this order, and weak ones stumble at the first question.
Ready to compare real estate projects in Saudi Arabia?Contact the Diyar Roaa Real Estate team and tell us the project name, the city, and the budget you have in mind in SAR. Then send the developer the message from this guide to get the licence, deed and escrow details in writing before you reserve anything.
Real Estate Projects in Saudi Arabia: 6 Checks Before You Buy