Apartments Under Construction for Sale in Saudi Arabia

Buying an apartment under construction in Saudi Arabia allows entry into the market at an early stage of the project, but it is linked to a specific regulatory framework designed to protect the buyer throughout the execution period. The sale of off-plan apartments in Saudi Arabia is subject to the Real Estate Projects Sale and Lease on the Map system issued by the General Authority for Real Estate, which requires each project to have an independent escrow account and prohibits the developer from using buyers' funds outside this framework. This page reviews the key information a buyer needs to know before contracting for an apartment under construction, as well as the most active areas currently witnessing projects.

What is the difference between an apartment under construction and a ready apartment?

The two differ in two essential points: the delivery timing and the level of regulatory protection accompanying the transaction. Ready apartments are delivered immediately upon completion of transfer procedures, while delivery of an apartment under construction is linked to a project timeline that may extend for months or years. Conversely, apartments under construction fall under a more detailed regulatory oversight regarding the developer’s obligations, including licensing, escrow accounts, and periodic reports, which do not apply to the purchase of ready units.

How does the off-plan sale system protect apartment buyers in Saudi Arabia?

The Real Estate Projects Sale and Lease on the Map system separates buyers' funds from the developer’s personal accounts by creating an independent escrow account for each project. All amounts paid by buyers are deposited into this account and may not be seized for the developer’s creditors. The account cannot have ATMs or credit cards issued on it, and withdrawals are limited to documented transactions directly related to the project. The project land is also marked on the ownership deed to prevent any action outside the system, ensuring it is not used as collateral for other developer obligations during execution.

You may be interested in Maarij 120 Project in Al Faisaliah District: Residential Apartments in Jeddah

How is the project and developer license verified before purchase?

No developer may conduct off-plan sales activities without being registered in the real estate developers registry and obtaining a special license for the project through the Wafi platform of the General Authority for Real Estate. Before contracting for any apartment under construction, it is essential to verify the developer's registration, that an official license exists specifically for the project (not just a general license for the developer), and that an active escrow account is in the project’s name. This account is only activated after the licensing and annotation of the land deed.

How are financial payments handled in an under-construction apartment project?

Amounts paid by the buyer are transferred to the project’s escrow account, then disbursed to execution work according to the actual engineering progress percentage, not at the developer’s discretion. Each disbursement is documented and certified by a consulting office and a legal accountant, alongside periodic reports submitted to the General Authority for Real Estate to monitor progress. This links fund flow to real, tangible building advancement rather than relying on undocumented timing promises.

You may be interested in Osus Prime Project: Luxury Apartments in Al Qairawan District

What guarantees are associated with delivering an apartment under construction?

The system obliges the developer to guarantee the real estate unit for an entire year from the actual delivery date. This period covers defects and execution-related work as determined by the system’s executive regulations. It is important to keep delivery documents and the delivery date carefully, as the warranty period is directly linked to this date.

Does the law for foreign ownership of under-construction apartments differ between Saudi cities?

Yes, the non-Saudi ownership path includes off-plan apartments as well as ready apartments, but the eligibility to own varies by city: Riyadh and Jeddah are subject to specific approved geographic zones, other cities have wider access, while Mecca and Medina are restricted to Muslims only regardless of the unit’s construction status. To review full conditions, see the Terms and Conditions for Foreign Property Ownership in Saudi Arabia page.

You may be interested in The Grove Project: Luxury Apartments for Sale in Al Salamah District

Is buying an apartment under construction linked to obtaining residency in Saudi Arabia?

Buying an off-plan apartment is included among the pathways qualifying for a type of residency linked to real estate ownership, whereas this path was previously limited in earlier regulatory stages only to ready properties. This expansion allows entering a project early in execution without losing eligibility for the residency path, provided full conditions for this path are met.

What risks should be noted when buying an apartment under construction?

Despite the regulatory protection provided by the escrow account and mandatory licensing, buying an apartment under construction remains associated with risks worth attention, most notably the possibility of delayed delivery beyond the original project schedule. To minimize this risk, it is advised to check the developer’s history in completing previous projects and review the actual project progress percentage when deciding to buy, instead of relying solely on the timeline announced in marketing materials.

Also read: Villas for Sale in Riyadh with Installments

What are the main areas of under-construction apartment projects in Saudi Arabia?

Most under-construction apartment projects currently focus in Riyadh due to the city’s urban development density, and in Jeddah because of its ongoing coastal expansion. The Eastern Province, specifically Dammam and Khobar, is witnessing increased activity in this project type linked to the industrial and commercial expansion in the region. In Mecca and Medina, under-construction apartment projects continue at a pace primarily tied to the housing demand of citizen and Muslim resident populations, with the reminder that property ownership in these two cities is limited to Muslims and not subject to the geographic zoning system applied in Riyadh and Jeddah.

How does امتلاك Global help you safely buy an apartment under construction?

The امتلاك Global team reviews every project's license and escrow account status before presenting it to clients, and regularly monitors the actual progress percentage of projects under construction, including verifying the developer’s record and the announced delivery date versus actual on-site progress. For anyone considering buying an under-construction apartment in any Saudi city, a free review of the specific project status is available before making any financial decision.