Over the past few years, the real estate sector in the Kingdom has witnessed the issuance of more than (20) fundamental legislation announced by the Real Estate General Authority (REGA), aimed at regulating the real estate market, enhancing its vitality and attractiveness, and raising levels of reliability and transparency. These reforms contributed to classifying the Saudi real estate market as one of the most improved globally, according to the Global Real Estate Transparency Index 2024.
The legislative development of the Saudi real estate market reflects a comprehensive framework of laws, rules, and implementing regulations that demonstrate the government’s strategic interest in the sector. Foremost among these developments was the establishment of REGA as the official governmental body responsible for regulating, developing, and improving the efficiency of real estate activities, while encouraging investment in alignment with economic and social development goals. The legislative journey began with the issuance of the Real Estate Unit Ownership, Subdivision, and Management Law, which governs shared property ownership, subdivision of real estate units, and owners’ association management. This was followed by its implementing regulations, outlining the specific provisions of the law. Subsequently, the Law of Real Estate Registration was issued to launch property title registration operations and regulate the acquisition of real rights in real estate. This law has already led to the correction of more than 1.3 million real estate maps and the registration of over 350,000 title deeds, with a national target of registering 8 million properties in the coming period. Its implementing regulations further clarified registration procedures and legal requirements.
The Real Estate Brokerage Law, along with its implementing regulations, played a key role in enhancing reliability in the real estate market by establishing a clear legal framework that protects the rights of all parties. It has significantly strengthened trust among investors, property owners, real estate brokers, service providers, and clients. Currently, around 60,000 licensed real estate brokers are practicing in the Kingdom. Several executive and regulatory frameworks have stemmed from this law, including provisions regulating intermediation, real estate services provided by licensed practitioners, real estate consultancy and analytics, and real estate auctions—from licensing to conducting and closing auctions. The law also includes a violations classification and penalties table. Additional standards were issued to regulate and license electronic real estate platforms, along with controls and conditions for real estate advertisements and their content, all designed to preserve rights and boost transparency and reliability in the market.
The Real Estate Contributions Law and its implementing regulations introduced controls for the qualification and classification of practitioners, contribution guarantee account requirements, and a violations classification and penalties table. These measures aim to boost investor confidence and eliminate irregular or unregulated real estate contribution practices, creating a more secure investment environment. This law complements the Off-Plan Real Estate Projects Sale and Lease Law, which regulates the development of off-plan projects—from licensing to completion—and includes its own regulatory framework and penalties. This legal foundation has led to notable growth in the off-plan development sector, with over 130 project licenses issued, exceeding a combined value of SAR 200 billion over the past two years.
These real estate legislation reflect the Kingdom’s recognition of the sector as one of the key pillars of the national economy, in line with the strategic objectives of Saudi Vision 2030. The comprehensive legislative framework has significantly contributed to the flexibility, sustainability, and continued growth of the real estate market, helping to build a future-ready sector based on adaptable and globally aligned legal foundations.