In addition to being the holiest towns in Islam, Makkah and Madinah have booming real estate markets. Every year, millions of pilgrims go to these cities to do the Hajj and Umrah, which increases demand for hotels, commercial space, and rental homes. In February 2025, the recent Saudi real estate rules came into effect, making it the perfect time to invest.
The Future of Saudi Real Estate: A More Dynamic and Inclusive Market
One of the most visible impacts of the new guidelines is on the real estate sector. The Capital Market Authority (CMA) has taken bold steps by permitting non-Saudis to subscribe to real estate funds focused on key cities such as Makkah and Madinah. This initiative is designed to boost investment in projects that are critical to the Kingdom’s urban and economic development. As these projects gain momentum, the resultant increase in market liquidity and investor interest is expected to have a lasting positive impact on the broader economy.
The immediate market response, with real estate shares surging, highlights the positive sentiment among investors. Enhanced liquidity and increased foreign participation not only drive up share prices but also create a more vibrant, dynamic market that can support large-scale developmental projects.
The New Real Estate Laws in Saudi Arabia: Acceptance of Foreign Ownership
Foreign ownership in Madinah and Makkah was forbidden for many years. However, Saudi Arabia implemented a ground-breaking law in 2024, These are the main updates:
- Non-Saudis can buy property in Saudi Arabia with some restrictions, but in the holy cities, ownership is mainly for Saudi nationals, while foreigners can lease.
- Real estate businesses listed in Saudi Arabia that possess properties in these cities are open to foreign investors.
- Although specific visa requirements can be applicable, purchasing real estate in Saudi Arabia does not require a residency permit.
- Makkah and Madinah are some of the Middle East’s most lucrative real estate markets because of the constant influx of pilgrims and government-sponsored construction.
These reforms open up lucrative opportunities for international investors looking to tap into the booming real estate sector of Saudi Arabia.
What Makes Madinah and Makkah Real Estate So Profitable?
- Increased Interest in Rental Properties
There is a steady demand for hotels, serviced apartments, and short-term rentals because millions of pilgrims travel to these towns yearly. Saudi Arabia’s Vision 2030 aims to boost pilgrimage to 30 million per year by that year, which will further boost demand for real estate investments.
- Infrastructure Growth & Vision 2030
Saudi Arabia is investing heavily in infrastructure, which raises the value of real estate:
- Masjid Al-Haram’s Makkah expansion
- Construction of upscale luxury hotels and commercial areas
- Establishment of high-speed rail systems that link Madinah, Makkah, and Jeddah
As property values continue to rise in response to better connectivity and contemporary amenities, these developments increase the profitability of real estate investing.
- Investing Choices for All Price Ranges
Investors have various options, ranging from upscale homes close to Haram to off-plan projects with strong returns on investment.
Numerous hotspots are perfect for short-term and long-term investments for people interested in Saudi real estate trends.
Top Places to Invest in Madinah and Makkah
Top Investment Areas in Makkah:
- Ajyad District – A prime location for serviced apartments and hotels.
- Jabal Omar – Luxury residences with views of Haram.
- Al-Aziziyah – Strong demand for rentals and an affordable investment hub.
Top Investment Areas in Madinah:
- Central Madinah (Near Masjid an-Nabawi) – Ideal for rental revenue
- Al-Rawdah District – An expanding residential hotspot
- Quba District – provides reasonably priced apartments with significant potential for appreciation.
With continuing interest from pilgrims and tourists, investing in these places guarantees high occupancy rates and maximum returns.
Invest in Makkah and Madinah Real Estate with Helpline Group!
Makkah and Madinah have to be at the top of your list if you’re looking for an investment yielding both financial gain and significance. Helpline Group is a reputable business consultant in Saudi Arabia with more than 25 years of expertise in the Middle East. Our 300+ industry professionals across 10 offices are committed to providing clients with accurate and timely services. This is the ideal moment to invest and protect your position in one of the Middle East’s most promising real estate markets!
