Ownership Apartments in Saudi Arabia: Advantages, Disadvantages, and Buying Tips
بدر الحسني | Bader Al Hassany9 min read
Ownership apartments are residential units that a person buys to become their own property, whether for living or investment. They differ from renting because you are not just paying a monthly amount to live in a place; you are owning a real estate asset that you can benefit from in the future, either by selling or renting it out. In this article, we will talk about ownership apartments, their main advantages and disadvantages, and a few tips to help you make a more informed decision.
Why do some people prefer ownership apartments instead of regular rent?
The main difference is that renting gives you flexibility, but it does not build an asset for you. Ownership, on the other hand, is a bigger decision, but it gives you long-term stability. Some of the main reasons people prefer ownership apartments include:
- Stability in a private home instead of moving between rentals
- The ability to modify the apartment at any time
- Benefiting from the property in the future by selling or renting it out
- A variety of options that suit different budgets
- Usually lower cost than buying a villa or land and building a home
Read also: Renting or owning? A complete comparison and 8 key tips to help you decide
What are the advantages of ownership apartments?
Ownership apartments are a practical option for many families and individuals, especially in cities where land and villa prices are high.
The main advantages include:
- They are usually more affordable than villas and independent floors
- Suitable for small and medium-sized families
- Available in different spaces and locations
- Easy to rent out when you are not living in them
- Modern projects may include services such as elevators, parking spaces, and cameras
- Suitable for those who want to enter the real estate market with a lower budget
The most important advantage is that ownership apartments give you a balance between owning a property and managing cost. You do not need a large budget like buying a villa, and at the same time, you move away from the cycle of continuous rent.
What are the disadvantages of ownership apartments?
Despite their advantages, ownership apartments have some disadvantages that you should pay attention to before buying.
The main disadvantages include:
- Less privacy compared to villas
- Having neighbors in the same building
- Possible maintenance fees or owners association fees
- Some projects may have limited parking spaces
- Difficulty expanding in the future if the family grows
- Insulation and soundproofing quality differs from one project to another
Advantages and disadvantages of the owners association in ownership apartments in Saudi Arabia
If you are thinking of buying an ownership apartment, it is important to understand the owners association system. You should know that this system is mandatory in residential complexes that have 3 owners or more. This system has some positives, but it also has some negatives that may be annoying for some people. Let’s go over them quickly.
Main advantages of the owners association
The owners association helps organize the building better, especially when it comes to shared matters such as maintenance, cleaning, elevators, entrances, parking spaces, and lighting. Having a responsible entity reduces randomness between residents and makes paying fees and following up on repairs clearer for everyone.
Disadvantages
On the other hand, owners association fees may be annoying for some owners, especially if the services provided are not clear or do not match the value of the fees. Some problems may also appear if some residents delay payment, if the association management is weak, or if there are disputes over parking spaces and shared facilities. That is why it is better to ask about the association fees and how it is managed before buying the apartment.
How much are owners association fees in Saudi Arabia?
Example to make it clearer
- If the apartment value is more than SAR 300,000, the maximum fee is 3% annually. Example: an apartment worth SAR 850,000.
The calculation would be: 850,000 × 3% = SAR 25,500 annually.
- If the apartment value is SAR 300,000 or less, the maximum fee is 7% annually. Example: an apartment worth SAR 250,000.
The calculation would be: 250,000 × 7% = SAR 17,500 annually. But this does not mean the fees will always be this amount. These are only maximum limits set by the system. In many buildings, the fees are much lower, such as SAR 3,000 to SAR 6,000 annually, because the costs may only include a building guard, an elevator, or simple expenses. So you should always make sure before buying.
How much do apartments cost in Saudi Arabia? A general look based on listings on the Aqar app
Before reviewing prices, note that prices vary depending on the city, district, space, property age, finishing quality, number of rooms, and whether the apartment has features such as a roof, parking space, or elevator.
| City | Approximate prices |
|---|---|
| Riyadh | From around SAR 570,000 to more than SAR 1.7 million |
| Jeddah | From around SAR 400,000 to SAR 1.2 million |
| Dammam | From around SAR 630,000 to SAR 670,000 in some listings |
| Khobar | From around SAR 500,000 to SAR 630,000 |
| Dhahran | Some listings start from around SAR 690,000 |
| Abha | From around SAR 390,000 to SAR 635,000 |
| Khamis Mushait | Some apartments are listed at around SAR 500,000 |
For more details: Apartments for sale on Aqar platform
What is the best floor to live on in ownership apartments?
Many people ask the same question when buying an ownership apartment: should I choose the ground floor, first floor, second floor, or top floor?
The answer depends on your needs. There is no one floor that suits everyone, but there is a floor that suits your lifestyle. Here is a quick comparison.
| Floor | Suitable for whom? | Important notes |
|---|---|---|
| Ground floor | Elderly people, families, and those who want easy entry and exit | Privacy may be lower, especially if it is close to the entrance |
| First floor | Those who want a balance between easy access and privacy | A preferred option for many buyers |
| Second floor | Those who want more quietness and privacy | Suitable if the building has an elevator |
| Top floor | Those who want a view or a private roof | Make sure there is good thermal and water insulation |
When should you choose the ground floor?
The ground floor is suitable if your priority is easy movement. For example, if there are elderly people in the family, children, or if you do not want to depend on the elevator every day. But before buying an apartment on the ground floor, make sure of the following:
- Privacy level
- How close the apartment is to the entrance
- Good ventilation
- Noise level
- Window and entrance safety
- No humidity or leakage problems. The ground floor can be excellent if it has a good design, especially if it comes with a yard or a private entrance.
Is the first or second floor the best?
Many buyers prefer the first or second floor because they are balanced options. They are not too close to the entrance like the ground floor, and they are not as high as the top floor. The first floor is suitable for those who want easy access, acceptable privacy, and proximity to services. The second floor gives more quietness, especially if the building has an elevator and organized parking spaces. If you are looking for a safe and comfortable option for most cases, the first or second floor is often one of the best choices.
When is the top floor a good option?
The top floor is suitable if it has a private roof, a good view, or a design that gives more privacy. Some buyers prefer it because there is no one above them, which reduces noise from upper floors. But pay attention to two important points:
- Thermal insulation
- Water insulation
If the insulation is weak, you may suffer from higher heat in summer or leakage problems during rain. So do not buy a top-floor apartment before checking the warranties and execution quality.
How do you choose the right ownership apartment? Important points
Before buying an ownership apartment, do not rely on photos only. Photos may look nice, but they do not show everything.
- Location: Is the district suitable for your work and your children’s schools?
- Services: Are there supermarkets, mosques, schools, hospitals, and nearby road entrances?
- Space: Does it suit your current and near-future needs?
- Number of rooms: Do not buy an apartment smaller than your actual need.
- Parking: Make sure the apartment has a clear parking space.
- Elevator: Very important for upper floors.
- Insulation: Ask about sound, thermal, and water insulation.
- Warranties: Check the warranties for electricity, plumbing, and structure.
- Owners association: Know how maintenance and shared services are managed. We will discuss this point later.
- Price: Compare it with similar apartments in the same district.
Are ownership apartments suitable for investment?
Yes, this is actually one of the advantages of ownership apartments, especially in districts close to universities, commercial centers, hospitals, and work areas. But successful investment does not depend only on a low price. What matters is that the apartment is easy to rent, located in a desirable area, and has a space suitable for a wide range of tenants.
The best investment apartments are usually:
- In an active and well-served district
- Close to main roads
- With good finishing
- With clear parking spaces
- In an organized building
- Priced reasonably compared to the expected rent
9 common mistakes when buying ownership apartments
Avoid these nine mistakes before signing the contract:
- Buying the apartment because of the price only
- Ignoring the quality of the building
- Not visiting the location at different times
- Not checking the parking spaces
- Ignoring maintenance fees
- Not reading the warranties
- Not comparing the price with the market
- Buying a small space that does not fit the family’s needs
- Not checking the title deed and licenses
The important thing is to buy calmly. Do not rush just because you liked the listing or because the price seems attractive.