Real Estate Influencer Fraud in Saudi Arabia 2025: How to Protect Yourself from Cardboard Villas and Quick Wealth Illusions

Introduction: When Celebrities Become Dream Sellers

Imagine this scene: A Saudi man in his thirties scrolling through Snapchat after a long workday. A famous influencer appears touring an elegant villa with magical lighting, luxurious decor, and dreamy background music. The influencer enthusiastically says: "Opportunity of a lifetime! A luxury-finished villa at an unbelievable price! Contact now to book!"

The young man buys the villa with his life savings and takes out a twenty-year mortgage. Just six months later, he discovers the disaster: cracks in walls, water leaks from ceilings, sinking floors, and plumbing and electrical problems. The villa that looked like a palace on screen has become a daily nightmare.

This is not fiction but a painful reality experienced by thousands of Saudis who fell victim to what can be called "real estate influencer fraud." In this comprehensive guide, we will reveal the complete truth about this dangerous phenomenon and how to protect yourself and your savings from falling into the trap.

First: How Did Influencers Become a Powerful Force in Real Estate?

Social media celebrities, especially on Snapchat and TikTok, have played an unprecedented pivotal role in directing the compass of real estate investment in Saudi Arabia. The numbers speak for themselves: the average value of a single advertisement for Snapchat celebrities is about 8,500 riyals, and with at least 200 active real estate influencers, the market size of real estate influencer ads exceeds 50 million riyals monthly.

Why Do People Trust Influencers?

The "simple" follower sees the influencer as someone close to them, entering their home daily through the screen, sharing life details, and appearing honest and transparent. This illusory relationship creates blind trust that makes the follower consider the influencer a "trusted advisor" rather than "a paid seller." The bitter truth is that most Snapchat celebrities are not specialized in real estate originally, and their primary and ultimate goal is financial gain from advertising companies.

The Two Billion Riyal Case

In one of the largest financial fraud cases in Saudi Arabia, the head of the Financial Fraud Prosecution revealed a massive investment fraud operation through which two billion Saudi riyals were collected via a fake project allegedly for developing real estate and commercial complexes in northern Riyadh. What's alarming is that those behind this fraud exploited famous personalities on social media to promote the project, which contributed to attracting a large number of victims who trusted these celebrities' credibility without verifying project details.

Second: Cardboard Villas - Disaster Wrapped in Shiny Paper

The term "cardboard villas" has become common in the Saudi real estate market to refer to poor quality or fraudulent homes whose structural defects appear after a short period of residence. These villas look elegant and attractive from the outside but hide fragility in their infrastructure that may threaten residents' safety.

How Are Cardboard Villas Marketed?

Influencers market these commercial residential projects by excessively focusing on superficial decorations, hidden lighting, luxurious furniture, and emotional music. The camera tours around the villa at studied angles showing only what they want you to see, deliberately ignoring basic construction quality, thermal insulation, plumbing, electricity, and hidden works invisible to the eye.

Defects That Appear Later

Buyers of these villas discover after a short period of residence a series of serious defects: cracks in walls and floors, weakness in structural columns, leaks in roofs and ceilings, falling ceiling parts, poor electrical installations, sewage problems that overflow and leak outside walls, and floor sinking due to poor soil or weak foundations.

Reasons for Cardboard Villa Spread

Experts revealed four main reasons that led to the spread of fraudulent construction in the Saudi market. The first reason is commercial fraud in building materials where some contractors use poor materials to reduce costs. The second reason is the previous absence of strict building standards which led to construction randomness. The third reason is execution through unlicensed contractors or offices, or those called "briefcase traders" who intrude on the engineering profession. The fourth reason is the absence of effective supervision and follow-up on construction stages.

Third: Remote Lands - Quick Wealth Illusions

The second type of real estate fraud is promoting lands in very remote areas without services as "golden investment opportunities" whose prices will multiply soon "with upcoming projects." The influencer appears in front of desert land and enthusiastically talks about "massive projects" that will be established in the area, "highways" that will pass nearby, and "new cities" that will emerge soon.

The Painful Reality

Citizens buy with their meager savings hoping for quick wealth, only for a decade to pass and the land remains barren desert without services or real value. No roads, no electricity, no water, and no sign of the promised development. This type of fraud is called "systematic fraud" because the sale is legal and the land actually exists, but the promises and expectations on which the purchase decision was built were completely misleading.

Areas to Be Cautious About

Experts warned against buying in some areas promoted as investment opportunities while in reality being areas with incomplete services or not expected to have their services completed soon. Some of these areas have only one entrance and exit, and others don't allow construction at all. Buying in such areas is considered an uncalculated adventure.

Fourth: The Devastating Psychological Impact on Victims

Financial loss is not the only effect of this type of fraud. The psychological impact may be more severe and longer-lasting.

Feeling of Injustice and Betrayal

The victim feels like a "fool" who fell into an obvious trap. This feeling of betrayal strikes self-confidence and creates a state of deep frustration. Worse, this experience strikes trust in the real estate system as a whole and in societal icons who are supposed to be role models.

Regret and Naivety

Victims feel severe regret about the purchase decision and blame themselves for the "naivety" that made them trust someone they don't know just because they're famous on social media. This feeling of naivety accompanies the victim for many years, especially when they see the same influencer continuing to promote other projects while they're drowning in problems with the property they bought.

Continuous Financial Pressure

The employee who bought a "cardboard" villa for one million riyals and pays two million in installments to the bank for life finds themselves in continuous financial pressure. They pay exhausting monthly installments for a property deteriorating before their eyes while needing additional amounts to fix successive defects. This financial pressure reflects on all aspects of their life and their family's life.

Loss of Market Trust

On a broader level, these practices lead to deteriorating trust in the real estate investment sector as a whole. Potential investors become more hesitant and fearful, which negatively affects the real estate market movement in general.

Fifth: Real Estate General Authority Regulations - Legal Protection

The Real Estate General Authority issued "Real Estate Advertising Regulations" aimed at limiting fake advertisements related to the real estate sector, enhancing its reliability and raising the credibility level of platforms concerned with advertisements.

Advertiser Requirements

The regulations require the advertiser to be Saudi, and advertisers must register through the National Access platform. The advertiser must also be the property owner, or the owner's agent by legal power of attorney, or a real estate broker by written authorization or court order. The advertisement must include the advertiser's name and capacity, and they must hold a Fal license for real estate brokerage and marketing.

Advertisement Content

The purpose of the advertisement must be clear whether for sale or rent. The property location must be mentioned in detail including city, neighborhood, and plan number at minimum, with commitment to writing official names of cities and streets. All property data such as area, boundaries, and length must be mentioned, along with the property's legal status such as any disputes, mortgages, or restrictions on disposal.

Prohibitions

Publishing fake real estate advertisements for the purpose of collecting recipients' or public data or any other purpose is prohibited. Publishing advertisements containing false or misleading information not based on documented facts is also prohibited. Advertising properties via social media or any means outside licensed electronic real estate platforms is forbidden.

Sixth: Legal Penalties - Strong Deterrent

The Saudi system has set strict penalties for violators to ensure deterrence and consumer protection.

Real Estate Brokerage System Penalties

The fine for violating real estate advertising regulations reaches one million riyals per violation per building. The advertiser can also be suspended from the platform for up to one year, or the platform's license can be suspended for a specified period, or the license can be permanently revoked in serious cases.

Media System Penalties

The Media Regulatory Authority fined a Snapchat celebrity 100,000 riyals and suspended their media license for 30 days due to repeatedly publishing violating media content during participation in real estate and social events, and non-compliance with the Audio-Visual Media Law which stipulates not broadcasting any content containing false information not based on documented facts.

E-Commerce System Penalties

Promoting fraudulent goods via social media with misleading advertisements is a violation of the E-Commerce Law and the Anti-Commercial Fraud Law. This results in penalties reaching 3 years imprisonment and fines up to one million riyals, and the advertiser becomes a partner in misleading and deception.

Cybercrime System Penalties

The crime of fraud through assuming a false identity carries a penalty of imprisonment for up to 3 years and a fine not exceeding two million riyals or either. Non-Saudi celebrities who practice advertising without a license face penalties up to 50,000 riyals, six months imprisonment, and deportation.

Seventh: Saudi Building Code - Eliminating Cardboard Villas

The Saudi Building Code for the residential sector came to limit the "cardboard villas" phenomenon and correct errors and violations occurring in some residential buildings.

Code Requirements

The code requires issuing an insurance policy on the building against hidden defects at an estimated cost of 1.5% of the total project. It also requires contracting with a design engineering office to prepare designs and drawings according to the Saudi code for residential buildings, and execution through an accredited and licensed contractor.

Participating Entities

Several entities participate in applying the code including the Ministry of Municipal and Rural Affairs and Housing, the General Directorate of Civil Defense, the Ministry of Energy, and the Saudi Standards, Metrology and Quality Organization. This cooperation ensures comprehensive oversight of all construction stages.

Violation Fines

Anyone who violates the code is punished with a fine not exceeding one million riyals per violation per building. These deterrent fines aim to ensure all parties' compliance with quality and safety standards.

Eighth: How to Protect Yourself from Fraud

Before Buying

First: Don't trust any real estate advertisement from an influencer on social media no matter how famous or beloved. Remember they receive payment for this advertisement and bear no responsibility for product quality.

Second: Verify the advertiser's license through the Real Estate General Authority website. You can verify the validity of the "Fal" license for individuals and establishments, and verify the authenticity of real estate advertising licenses using the license number.

Third: Visit the property personally and more than once at different times. Don't settle for one tour with the marketer; return at different times to get to know the neighborhood, neighbors, traffic, and noise.

Fourth: Hire an independent civil or architectural engineer to inspect the property before purchase. The cost of engineering inspection is minimal compared to the cost of discovering defects later.

Fifth: Check the real estate developer's record and previous projects. Search for previous buyers' opinions in forums and social media.

When Buying Land

First: Ensure there's an official valid ownership deed for the land and verify its authenticity through official authorities.

Second: Visit the land in person and ensure it matches the deed in terms of location, area, and boundaries.

Third: Verify the existence of services or plans to deliver them. Don't rely on verbal promises from the seller or marketer.

Fourth: Stay away from very remote areas with no actual urban activity, even if the price is tempting.

Fifth: Don't believe promises of "upcoming projects" unless officially announced by government authorities.

When Signing

First: Read the contract completely and don't sign anything you don't understand. Use a lawyer or legal advisor if necessary.

Second: Ensure all verbal promises are written in the contract. Benefits offered verbally cannot bind the seller if not in the contract.

Third: Verify how the property will be registered. Will it be registered directly in your name or under a company? What are your guarantees if the company goes bankrupt?

Ninth: Where to Complain If You Become a Victim

If you've been subjected to real estate fraud or deception, you have several authorities to turn to.

Real Estate General Authority

You can file a complaint against advertisers or real estate marketers violating real estate advertising regulations through the Authority's website.

Ministry of Commerce

For complaints related to commercial fraud and misleading advertisements via the "Commercial Report" app or by calling 1900.

Public Prosecution

In cases of financial fraud and scams, you can file a report with the Public Prosecution which has a specialized financial fraud department.

Media Regulatory Authority

For complaints against influencers who publish violating or misleading media content.

Court

You have the right to file a lawsuit claiming compensation for damages incurred as a result of deception or fraud.

Tenth: Frequently Asked Questions

Can I advertise my property on Snapchat?

Publishing real estate advertisements via social media or any means outside licensed electronic real estate platforms is not permitted. You must have a Fal license for real estate brokerage and marketing if you're a broker, or be the property owner advertising through a licensed platform.

What is a Fal license?

A Fal license is the license issued by the Real Estate General Authority that authorizes its holder to practice real estate brokerage and marketing activities. Without this license, no person has the right to practice these activities.

How do I verify a real estate advertisement's authenticity?

You can verify real estate advertising license authenticity through the Real Estate General Authority website using the license number mentioned in the advertisement. If the advertisement doesn't contain a license number, it's violating.

What's the difference between building code and building permit?

A building permit is the official authorization to start construction, while the building code is the set of technical standards and requirements that must be followed during construction to ensure safety and quality.

Can I get my money back if I discover property defects?

This depends on several factors including: Were the defects apparent or hidden? Was the building insured against hidden defects? What are the contract terms? It's advised to consult a specialized lawyer to evaluate your specific case.

How long is the building warranty for hidden defects?

According to the Saudi Building Code, an insurance policy on the building against hidden defects must be issued. The insurance duration and terms are specified in the policy, so it must be carefully reviewed when purchasing.

Is the influencer legally responsible for the product they promote?

Yes, the advertiser is considered a partner in responsibility if the advertisement contains false or misleading information. The influencer can be punished under several systems including the E-Commerce Law, Media Law, and Anti-Commercial Fraud Law.

Conclusion

Real estate influencer fraud in the Saudi market is a dangerous phenomenon that has led to the loss of thousands of families' savings and destroyed trust in the real estate system. Cardboard villas, remote lands, and fake promises of quick wealth are all tools used by fraudsters to exploit people's trust in celebrities.

But the good news is that official authorities are moving strongly to confront this phenomenon. Real estate advertising regulations, the Saudi Building Code, and deterrent penalties are all tools aimed at protecting consumers and organizing the market. But the first protection starts with you as an aware and informed buyer.

Always remember: The influencer is not a trusted advisor but a paid seller. Beautiful decorations don't mean solid construction. Verbal promises are worthless if not written in the contract. And the most important investment you make is investing time in research and verification before you invest your money.

At Raghdan, we believe that the Saudi real estate market deserves trust, but this trust must be built on transparency and correct information, not celebrity advertisements. Share your experience or questions with us, and we're here to help you in your real estate journey safely.