How Foreigners Can Buy Property in Madinah: 2026 Rules, Zones and Steps
Since 2026, Muslim foreigners can own homes in designated zones of Madinah under Saudi Arabia's new property law. Here is who qualifies, where you can buy, what it costs and how to apply.
Quick answer: Yes, foreigners can now get property in Madinah, but only under strict conditions. Saudi Arabia's new Law of Real Estate Ownership by Non-Saudis came into force in January 2026. In Madinah, ownership is limited to Muslim buyers and only inside government-designated zones. Both residents and non-residents can apply, entirely online, through REGA's official Saudi Properties portal. Plan for a 5% real estate transaction tax plus other fees, and note that owning property does not give you residency on its own.
🔗 Official source: check eligibility and approved zones on the REGA Saudi Properties portal.
Open Saudi Properties →1. Can Foreigners Own Property in Madinah?
For decades the answer was almost always no. Under the old law from 2000, non-Saudis could not own property in Makkah or Madinah, except through inheritance or limited long-term usage rights. Most foreigners who wanted a home near the Prophet's Mosque rented, or relied on informal arrangements that carried real legal risk.
That changed in 2026. Saudi Arabia's new Law of Real Estate Ownership by Non-Saudis opens a legal path for foreigners to own property in the Kingdom, including, for the first time, freehold property in parts of Madinah. The conditions in the two Holy Cities are stricter than anywhere else in the country, so it is worth understanding them before you look at a single listing.
💡 In one line: if you are a Muslim, whether you live in Saudi Arabia or abroad, you can now buy property in Madina, but only in the zones the government has approved for foreign ownership, and only through the official REGA platform.
2. The New Saudi Property Law in Brief
The law was introduced as part of Vision 2030 to attract investment and make it easier for residents and foreign Muslims to settle in the Kingdom. These are the key dates:
| Date | What happened |
|---|---|
| 25 July 2025 | The Law of Real Estate Ownership by Non-Saudis was published, replacing the 2000 law. |
| January 2026 | The law came into force, 180 days after publication. |
| 23 June 2026 | The Council of Ministers approved the Executive Regulations and the document listing the designated zones where foreigners can buy. |
| Late June 2026 | REGA opened applications on the Saudi Properties platform, with the zone map published. |
The law is managed by the Real Estate General Authority (REGA). Every purchase must be registered in the national Real Estate Registry, and a sale is not legally complete until that registration is done. Breaking the rules can lead to fines of up to SAR 10 million and, in serious cases, a forced sale of the property.
3. Who Is Eligible to Buy in Madinah
Madinah has its own rules, which are tighter than in cities such as Riyadh or Jeddah. This is the general picture based on REGA's published position and legal summaries of the law:
| Buyer type | Can buy in Madinah? | Conditions |
|---|---|---|
| Muslim resident (Iqama holder) | ✅ Yes | Only inside designated zones. Apply with your Iqama number. |
| Muslim living abroad | ✅ Yes | Only inside designated zones. You first need a Saudi digital identity issued through a Saudi mission. |
| Non-Muslim (resident or not) | ❌ No | Ownership in Makkah and Madinah is limited to Muslims. |
| Saudi company with foreign shareholders | ⚠️ Limited | Allowed in specific cases, mainly for business use or staff housing. Get written legal confirmation first. |
| Licensed real estate funds | ⚠️ Limited | Funds licensed by the Capital Market Authority may hold property, under CMA rules. |
⚠️ Residents: the "one home anywhere" rule does not apply here. In most of Saudi Arabia, legal residents may also own one home for personal use outside the designated zones. That allowance does not extend to Makkah or Madinah. In Madinah, every foreign buyer, resident or not, must buy inside a designated zone.
4. Designated Zones in Madinah
Foreigners cannot buy just anywhere in the city. The government has approved specific zones for foreign ownership, published in an official map on the Saudi Properties portal. Guides based on the June 2026 zone list report ten designated zones in Madinah:
Rua Al Madinah
A large development east of the Prophet's Mosque, planned for housing, hotels and retail.
Downtown Madinah
Central area south-west of the Haram, close to transport and services.
Dar Al Hijrah
Established district south-west of the Haram with residential and hospitality projects.
Knowledge Economic City (KEC)
Mixed-use city development, reported as the most advanced zone with bookings open earliest.
Other designated areas
Mishraf, Al-Ghurrah, Al-Mahwa, Diyar Al-Muqarr, and Madinah Zones 1 and 2.
Check the official map
Zone boundaries matter. A building one street outside a zone may not be eligible.
✅ Always verify the exact property, not just the area. Before paying anything, confirm on the Saudi Properties portal that the specific plot or unit sits inside a designated zone and is registered in the Real Estate Registry. The developer should give you the property deed number so you can check it.
5. Costs, Taxes and Fees
The price of the property is only part of the cost. Budget for these as well:
- Real Estate Transaction Tax (RETT): 5% of the property value. This applies to property sales in Saudi Arabia for Saudis and foreigners alike and is collected through ZATCA.
- Non-Saudi disposal fee: the law allows REGA to charge foreigners a fee of up to 5% of the property value. Reports on the June 2026 Executive Regulations put the rate at 2% in Makkah and Madinah. Confirm the current rate on the portal before you commit.
- Agent and legal fees: brokerage commission, usually agreed in advance, plus the cost of an independent lawyer to check the contract and title.
- Running costs: service charges for apartments in managed buildings, maintenance, and utilities.
💡 Simple budgeting rule: keep at least 8% to 10% of the purchase price aside for taxes and fees, on top of the property price. Some sources quote a 10% total, which reflects the maximum allowed by the law, not necessarily the rate you will pay.
On financing, do not assume a mortgage will be available. The law does not address mortgages for non-resident buyers, and most foreign buyers so far are paying cash. Residents with a Saudi salary may have more options, so ask Saudi banks directly.
6. Documents You Need
The process is digital, so most of the work is setting up your accounts correctly before you apply.
Iqama (residents)
Residents in Saudi Arabia apply using their Iqama number, linked to Absher.
Saudi digital identity (non-residents)
If you live abroad, get a digital identity card through a Saudi embassy or consulate before you start the online application.
Nafath and a Saudi mobile number
Used to log in and approve each step. Non-residents need a Saudi number linked to their digital identity.
Saudi bank account
Payments are made electronically, so non-residents also need a Saudi bank account.
Valid passport
Your passport details must match your digital identity exactly.
Property deed number
Provided by the seller or developer, so you can check the property in the Real Estate Registry.
7. How to Buy Property in Madinah, Step by Step
Every legal foreign purchase goes through REGA's Saudi Properties platform. Here is the process from start to finish.
Set up your digital identity
Residents activate Absher and Nafath with their Iqama. Non-residents get a Saudi digital identity card through a Saudi mission, then link a Saudi mobile number and open a Saudi bank account.
Check the zone map
Open the Saudi Properties portal and review the designated zones in Madinah. Shortlist areas that suit your budget and purpose, such as family visits, retirement or rental income.
Choose a property and verify it
Ask the developer or seller for the property deed number. Confirm the unit is registered and falls inside an approved zone. Only work with licensed brokers and developers.
Submit your application on the portal
Enter the property details. The platform checks your eligibility, including the Muslim-only condition for Madinah, against the rules for that zone.
Sign the contract and pay
Have a lawyer review the sale contract first. Pay the price, the 5% transaction tax and any non-Saudi fee electronically through official channels only.
Register the title
The sale is complete only when ownership is recorded in the Real Estate Registry in your name. Keep a copy of the electronic title deed.
Check Your Eligibility to Buy in Madinah
See the approved zones, check whether you qualify and start your application on the official Saudi Properties portal. No agent is needed to apply.
Go to Saudi Properties Portal → Opens the official Real Estate General Authority (REGA) platform8. Does Buying Property Give You Residency?
No, not by itself. Owning a home in Madinah does not give you an Iqama or the right to live in Saudi Arabia. If you live abroad, you will still visit on an Umrah, tourist or other valid visa.
There is a separate route: Saudi Arabia's Premium Residency programme has a real estate owner track, which has required ownership of residential property worth at least SAR 4 million, free of mortgage. Its rules and eligible locations are set separately from the property law, so check directly with the Premium Residency Center whether a property in Madinah qualifies before you rely on it.
9. Other Ways to Hold Property in Madinah
If you are not eligible to buy, or the zones do not suit you, these are the lawful alternatives:
- Long-term lease: renting for several years through a registered contract on the Ejar platform gives you security without ownership.
- Usufruct rights: the right to use a property for a fixed period, sometimes very long, without owning the land. The new law allows usufruct and similar rights alongside full ownership.
- Hotel and serviced apartment projects: some developments near the Haram sell long-term usage rights in hotel units. Check carefully what legal right you are actually buying.
- Regulated real estate funds: funds licensed by the Capital Market Authority may hold property in the Holy Cities. Investing in a fund gives you exposure to property returns without direct ownership, subject to CMA rules for foreign investors.
10. Mistakes and Scams to Avoid
Demand from Muslims around the world to own a home near the Prophet's Mosque is high, and scammers know it. Follow these rules without exception.
🚫 Never buy in someone else's name. Registering a property under a Saudi friend, employer or "sponsor" while you secretly pay for it is illegal under Saudi anti-concealment rules. You can lose the property and your money, and face penalties. Now that a legal path exists, there is no reason to take this risk.
- Do not pay outside official channels. No cash deposits, personal bank transfers or WhatsApp "booking fees" to individuals.
- Do not trust "anywhere in Madinah" offers. If the property is not in a designated zone, a foreigner cannot legally own it.
- Do not skip the deed check. Confirm the property is registered and the seller is the real owner or a licensed developer.
- Do not rely on old articles. Many websites still describe the pre-2026 rules, or quote figures from before the June 2026 regulations.
- Do not sign without a lawyer. An independent Saudi lawyer costs far less than a bad contract.
Frequently Asked Questions
Yes, since the new Saudi property law came into force in January 2026, but only Muslim foreigners, and only inside the zones designated by the government for foreign ownership. Purchases are made through REGA's official Saudi Properties portal and must be registered in the Real Estate Registry.
No. Ownership of property in Makkah and Madinah by non-Saudi individuals is limited to Muslims. Non-Muslim foreigners can buy property in designated zones in other Saudi cities, such as Riyadh and Jeddah, subject to the law.
Yes, if you are a Muslim and the property is in a designated zone. You first need a Saudi digital identity issued through a Saudi embassy or consulate, plus a Saudi mobile number and bank account, and then you apply online through the Saudi Properties portal.
All buyers pay a 5% Real Estate Transaction Tax. The law also allows a non-Saudi fee of up to 5% of the property value; reports on the June 2026 regulations put it at 2% in Makkah and Madinah. Confirm the current rate on the official portal and budget for legal and agent fees as well.
No. Property ownership alone does not give you an Iqama. Saudi Arabia's Premium Residency programme has a separate real estate owner track with its own value threshold and conditions, which you should confirm directly with the Premium Residency Center.
Only where a designated zone covers that area. Several designated zones, such as Rua Al Madinah, Downtown Madinah and Dar Al Hijrah, are close to the Prophet's Mosque. Always check the exact property on the official zone map before paying.
It is not guaranteed. The law does not set out mortgage rules for non-resident buyers, and most foreign purchases so far have been cash. Residents with a Saudi income should ask Saudi banks directly about home finance options.
Final Thoughts
For Muslims around the world, owning a home in the city of the Prophet ﷺ was out of reach for a long time. The 2026 law changes that, with a legal, transparent route through designated zones and an official online platform.
The rules are strict, and they are new. Buy only inside a designated zone, only through the Saudi Properties portal, and only after checking the deed and getting independent legal advice. Done properly, the process protects you. Shortcuts are where people lose their money.
🎯 One action to take right now: set up your Saudi digital identity, or activate Absher and Nafath if you are a resident. It is the first step for any purchase, and having it ready means you can act quickly when the right property comes up.
🏠 Official REGA portal: zones, eligibility and applications
Open Saudi Properties →📲 Planning a move to Saudi Arabia? See our guide to Saudi Arabia Railways (SAR) jobs and follow AfiaDigital for verified jobs and opportunities in the Kingdom.