Advantages of Freehold Property Ownership in North Jeddah

North Jeddah combines major announced development projects with prices lower than those in Riyadh and urban expansion focusing new supply in the northern and central neighborhoods. These factors make it one of the top options for buyers seeking housing or investment in Jeddah. However, careful assessment of each project and geographic area is needed before purchase. This guide presents advantages supported by official and reliable sources and highlights matters that need to be checked, such as the geographic scope requirement for non-Saudis and the delivery date of projects under construction. It is useful for both residents and foreigners, noting that freehold rules differ depending on the buyer's status.

What does North Jeddah mean in real estate?

In the real estate market, North Jeddah refers to areas north of the city center, including North Obhur and its surroundings, as well as northern waterfront projects like Marafy. There is no unified official administrative definition for this term, so marketers use it with varying meanings. It is important to verify the neighborhood boundaries and the project location on the map before considering it as part of North Jeddah.

What are the major projects supporting North Jeddah?

Roshn, a project of the Public Investment Fund, announced on August 29, 2023, the launch of the Marafy project in northern Jeddah. It is a mixed-use project targeting more than 130,000 residents and includes an 11 km artificial canal, according to the Saudi Press Agency. Knight Frank reports in its Destination Saudi 2026 report that Roshn’s Al Arous and Marafy projects include more than 52,000 planned residential units along a canal of 11.4 km, with Marafy scheduled for 2028.

This means the northern waterfront will feature a large, modernly planned new supply, benefiting those who prefer serviced residential environments over older neighborhoods. To know which areas are growing faster, see The fastest-growing real estate areas in Jeddah.

Are prices in North Jeddah reasonable compared to other cities?

The average price per square meter for apartments in Jeddah is about 4,288 SAR in 2025, with a 2% annual increase. The average is about 4,400 SAR/m² in Q1 2026 compared to about 6,200 SAR in Riyadh, making Jeddah generally less expensive than Riyadh per square meter.

Averages within Jeddah vary by neighborhood. Knight Frank recorded about 6,220 SAR/m² for South Obhur and 6,310 for Al Zahraa, indicating that some northern neighborhoods are above the city average. Therefore, not all of North Jeddah is cheaper; each neighborhood and project should be compared to similar averages. For detailed prices, see Apartment prices in Jeddah.

Is there new residential supply in North Jeddah?

New developments in Jeddah are concentrated in the northern and central neighborhoods after removals in the south. This gives buyers the option of modern units with up-to-date specifications instead of older buildings, whether in ready or under-construction projects. Buying an under-construction unit requires checking the project’s license on the Wafi platform and the existence of an escrow account linked to construction progress, as both protect your payments.

Also read: Properties for sale in Saudi Arabia with sea view

What types of properties are available in North Jeddah?

Available properties include apartments, villas, and townhouses depending on the project. Historically, North Obhur has been more of a market for villas and land than apartments. New residential projects have started to add apartment units. Imtilak Global’s website features Grand Loft Project by Kayan Almasiya Real Estate in North Obhur of this type, with its specifications and prices on the project page.

Can foreigners own property in North Jeddah?

The geographic scope requirement applies in Jeddah among the five cities subject to the system (Riyadh, Jeddah, Makkah, Madinah, and AlUla). Freehold for non-residents is limited to properties within the approved scopes. The Council of Ministers approved the executive regulations and geographic scopes on June 23, 2026, and the system took effect on January 22, 2026.

JLL’s analysis mentioned two named zones in Jeddah: Central Jeddah and Al Arous, without specifying other neighborhoods. Therefore, it is essential to verify that the neighborhood or specific project is within an approved scope before any commitment; being in North Jeddah alone is not enough. Applications are submitted through the Saudi Real Estate Portal. Non-residents need a digital ID, bank account, and Saudi mobile number. For detailed information, see Foreign ownership zones for real estate in Jeddah.

What are the additional costs when buying?

The Zakat, Tax and Customs Authority imposes a real estate transaction tax of 5% of the sale value. In addition, foreigners pay a 2% freehold fee collected by the General Real Estate Authority on the transaction value. The total may reach about 7% according to JLL’s analysis. It is important to agree with the seller on who bears the tax, as the seller is responsible for paying it to the authority. Include these items in your budget.

What should be checked before buying property in North Jeddah?

• Geographic scope: Whether the neighborhood or project is within an approved area for freehold if you are not Saudi.

• Delivery date: The difference between the announced date and actual progress on site, especially in major projects.

• Completion of services: Schools, hospitals, and roads may be completed after unit delivery, so ask about their schedule.

• Distance to city center: Affects commute time and rental demand.

• Project license and escrow account for off-plan units.

• Price per square meter compared to neighborhood transactions not just advertised prices.

Also read: Luxury penthouse apartments for sale in Jeddah

What about rental yields in North Jeddah?

No official published data was found on rental yields specifically in North Jeddah neighborhoods, so we do not provide a percentage. Yields are calculated from actual annual rent after deducting maintenance, management, and vacancies, and compared to the neighborhood’s registered rents on the Ejar platform. Demand strength in new areas depends on occupancy and completion of services.

The advantages of North Jeddah are based on major announced projects, new residential supply, and a general price level lower than Riyadh. The value of these advantages to the buyer remains tied to the details of each project, its geographic scope, delivery date, and price per square meter compared to neighborhood transactions.

At Imtilak Global, we start with these details for the client, verify the project’s location and whether it is within the freehold scope, review the license and escrow account, compare the price per square meter to registered transactions, then arrange a field or remote tour. Those comparing North Jeddah to other neighborhoods in the city can book a free consultation for a clear comparison by the numbers.

Frequently Asked Questions

What is the main advantage of North Jeddah?

Major announced development projects like Marafy and new residential supply, with Jeddah prices generally lower than Riyadh.

Can a foreigner buy property in North Jeddah?

Yes, but only within approved zones. You must verify the neighborhood or project scope.

What is the freehold fee for foreigners?

2% freehold fee in addition to 5% real estate transaction tax.

Are prices in North Jeddah lower than Riyadh?

The average in Jeddah is lower, but some northern neighborhoods are above the city average. Compare the specific neighborhood and project.

Is off-plan buying suitable?

Yes, after verifying the license, escrow account, and delivery date.