These are the most common questions we receive from international investors considering property in Madinah. We believe in complete transparency — no sales pressure, just clear information.
Can non-Saudis buy property in Madinah?
Yes. Under the 2026 foreign ownership regulations, international Muslim investors can purchase property in designated areas of Madinah. The process requires an application through the Ministry of Investment, and properties must be in approved developments such as Al Alyaa at KEC. Non-Muslims are not permitted to own property in Madinah.
What is the Wafi programme and how does it protect me?
Wafi is Saudi Arabia's government-regulated off-plan sales programme, overseen by the Real Estate General Authority. All off-plan developers must be Wafi-registered. Your payments are held in a secure escrow account and only released to the developer as verified construction milestones are achieved — providing institutional-grade buyer protection.
What are the total costs of buying property in Madinah?
The total transaction cost for buying property in Madinah typically ranges from 8% to 13% of the purchase price. This includes: 5% VAT on new properties, 2.5% real estate transaction tax (RETT), 1–2% registration fees, and legal/agent fees. There is no annual property tax and no capital gains tax in Saudi Arabia.
What rental yields can I expect from Madinah property?
Projected rental yields for quality off-plan property in Madinah range from 6% to 10% annually, depending on unit type, location, and management approach. The growing length of stay (from 2 nights in 2019 to 10 nights in 2024) and the 30 million visitor target by 2030 provide a strong structural tailwind for rental demand.
What is Al Alyaa and who is the developer?
Al Alyaa is a master-planned, fully gated residential community within the Haram boundary of Madinah, developed by Knowledge Economic City (KEC) — a Saudi joint-stock company aligned with Vision 2030. The community includes 1,490 residential units, a 144-key Hyatt Centric hotel, 480 Hyatt House serviced apartments, an international school, nursery, mosque, and 70,000 sqm of landscaped gardens.
Is Al Alyaa inside the Haram boundary?
Yes. Al Alyaa is strategically located within the Haram boundary of Madinah, on Safwan Bin Malik Road within the KEC masterplan. The community is 10 minutes by car from the Prophet's Mosque, 5 km from the Prophet's Mosque, and 8 km from Prince Mohammed bin Abdulaziz International Airport, with walking distance access to the Haramain High-Speed Rail Station.
What payment plans are available for off-plan property?
Off-plan developments in Madinah typically offer flexible payment plans spread over the construction period, often with a low initial deposit (10–20%) and instalments tied to construction milestones. This means you can secure a property at today's price while spreading payments over several years — a significant advantage over ready properties.
What is the currency and are there exchange rate risks?
All property transactions in Saudi Arabia are conducted in Saudi Riyals (SAR), which has been pegged to the US Dollar at a fixed rate of 3.75 SAR per USD since 1986. This peg has remained stable for nearly 40 years, effectively eliminating currency risk for investors from USD, GBP, EUR, or AED-denominated economies.
When is the best time to visit Madinah?
Madinah can be visited year-round, but the peak periods for pilgrims are Ramadan (the holiest month in the Islamic calendar) and the Hajj season. These periods see the highest rental demand and occupancy rates. The winter months (October to March) offer more moderate temperatures and are popular with families and leisure visitors.
How do I get started with buying property in Madinah?
The first step is a free, no-obligation consultation with our investment team. We will walk you through your eligibility, the available units at Al Alyaa, current pricing and payment plans, and the full buying process. You can book a call via Calendly or reach us directly on WhatsApp — both links are at the top of this page.
