Off-plan properties for sale in Al-Rimal district, Riyadh

Buying an off-plan property in the Al-Rimal district allows entry into the market at an early stage of the project, but it is also subject to a specific regulatory system designed to protect the buyer throughout the execution period. The sale of off-plan properties in Saudi Arabia, including projects under construction in Al-Rimal, is governed by the Off-Plan Property Sales and Leasing Law issued by the General Real Estate Authority, 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 most important things a buyer needs to know before contracting for a unit under construction in the district.

What is the difference between an off-plan property and a ready property in Al-Rimal?

An off-plan property differs from a ready property in two main aspects: the delivery timing and the nature of regulatory protection accompanying the transaction. While a ready property is delivered immediately after completing the transfer procedures, the delivery of an off-plan property is tied to the project’s timeline, which may extend for months or years depending on the stage of execution at the time of purchase. In contrast, off-plan properties are subject to a more detailed regulatory framework regarding the developer’s obligations, including licensing, escrow accounts, and periodic reports—elements that do not apply to the purchase of ready units.

How does the off-plan sales system protect property buyers in Al-Rimal?

The Off-Plan Property Sales and Leasing Law is based on the principle of separating buyers’ funds from the developer’s personal accounts by establishing an independent escrow account for each real estate project. All amounts paid by buyers are deposited into this account, and they cannot be seized for the benefit of the developer’s creditors. No ATM or credit cards may be issued for it, and disbursement is limited to checks or transfers documented by supporting documents proving their connection to the project.

Additionally, the project land is subject to a note on the title deed prohibiting any action outside the system, providing the buyer with an extra guarantee that the land will not be used as collateral for other developer obligations during execution.

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How is the project and developer license verified before purchase in Al-Rimal?

No developer is allowed to engage in off-plan sales activity except after being registered in the Real Estate Developers Register and obtaining a specific license for the project from the relevant authority, which is practically done through the Wafi platform of the General Real Estate Authority. Before contracting for any unit under construction in Al-Rimal, it is essential to verify:

• The developer is registered in the approved Real Estate Developers Register.

• An official license has been issued for the specific project, not just a general license for the developer.

• An active escrow account exists in the name of the project, which is only activated after the license is obtained and the land deed is endorsed.

This verification is the first step that must be completed before any discussion about unit details or delivery date.

How are financial payments disbursed for a project under construction in Al-Rimal?

The amounts paid by the buyer are transferred to the project's escrow account, then disbursed for execution works according to the actual engineering completion percentage of the project, not at the developer’s discretion. Each disbursement is documented and certified by a consulting office and a legal accountant, along with periodic reports submitted to the General Real Estate Authority to monitor progress. This mechanism links the flow of funds to real and tangible progress in construction, instead of relying on time promises not tied to any account or report.

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What guarantees are associated with the delivery of property units in Al-Rimal projects?

The system requires the developer to guarantee the property unit for a full year from the actual delivery date. This period covers defects and works related to execution as defined by the executive regulations of the system. It is important for the buyer to keep the delivery documents and their date accurately, as the guarantee period is directly linked to this date.

Can foreigners buy off-plan property in Al-Rimal?

Yes, the process of non-Saudis owning property includes properties sold off-plan, in addition to ready properties, within the approved geographic scope for foreign ownership in Riyadh. The same conditions for non-Saudi ownership apply to the foreign buyer in this case, along with the regulatory requirements for off-plan sales projects explained above.

Is buying an off-plan property linked to obtaining residency in Saudi Arabia?

Buying an off-plan property is included among the qualifying paths for one of the types of residency linked to real estate ownership in Saudi Arabia. Previously, this path was limited to ready properties only. This expansion allows the investor to enter a project at an early stage of execution without losing eligibility for the residency path, provided all specified conditions for this path are met.

What risks should be considered when buying off-plan property in Al-Rimal?

Despite the regulatory protection provided by the escrow account and mandatory licensing, buying an off-plan property still involves risks worth noting, the most prominent of which is the possibility of the agreed delivery date being delayed from the original project timeline. To reduce this risk, it is advisable to check the developer’s record in executing previous projects and review the actual completion percentage of the project when making the purchase decision, rather than relying solely on the timeline announced in marketing materials.

Buying an off-plan property in Al-Rimal offers an opportunity to enter the market at an early stage, supported by a regulatory system that includes mandatory licensing, an independent escrow account, and linking disbursement to the actual completion percentage. However, full benefit from this protection begins with thorough verification before signing, not after.

The Imtilak Global team reviews the license of each project and the status of its escrow account before presenting it to clients, and monitors the actual completion percentage of projects under construction in Al-Rimal on a regular basis, including verifying the developer’s record and the announced delivery date compared to actual progress on site. For those considering buying a unit under construction in the district, a free review of the specified project status is available before making any financial decision.