Property TypesBasement
Synonyms: Cellar، Lower Ground Floor، Underground Floor
Last updated: 2026-09-25
Short Definition
A basement is a floor located wholly or partly below ground level in a building, usually used for parking, storage or service and plant rooms such as generators, pumps and water tanks; in some commercial buildings it may be used for activities permitted by the licence.
Overview
A basement is a floor located wholly or partly below ground level in a building, usually used for parking, storage or service and plant rooms such as generators, pumps and water tanks; in some commercial buildings it may be used for activities permitted by the licence.
In Saudi Arabia, the use of a basement is determined by the building permit, municipal requirements and safety and civil defence requirements on ventilation, emergency exits and fire fighting, so a basement licensed for parking or services cannot be converted into housing or a commercial activity unless the permit and requirements allow it. In a separately titled jointly owned property, parking, tanks and services in the basement are common parts under the Law of Ownership, Partition and Management of Real Estate Units, unless part of it is partitioned as a separate unit such as a garage. A basement is not part of the leased area unless the contract says so: the area on which rent is calculated is what the contract specifies, and if a price per square metre was set and the area turns out to be smaller, the landlord must reduce the rent accordingly under the Civil Transactions Law.
In practice, a basement makes a building more efficient by providing parking and services without using upper-floor space, but it is the part most exposed to groundwater and rainwater leaks and poor ventilation. Waterproofing, drainage and ventilation should therefore be inspected before buying or leasing, and the contract should specify who maintains pumps and deals with leaks, and how the basement is priced if it is included in the leased area.
⚖️ Legal Basis
Article 1 of the Law of Ownership, Partition and Management of Real Estate Units issued by Royal Decree No. (M/85) dated 2/7/1441H lists parking, tanks and services among the common parts and allows a garage to be partitioned as a separate unit, and Article 9 prohibits using common parts other than for their designated purpose. Article 411 of the Civil Transactions Law issued by Royal Decree No. (M/191) dated 29/11/1444H provides that where rent was set per unit and a shortfall appears, the landlord must reduce the rent and the tenant may seek termination, and Article 419 makes necessary repairs the landlord's duty unless otherwise agreed. Use of a basement is subject to the building permit and municipal requirements.
💡 Practical Example
A company leases an office building in Jeddah with an advertised area of 2,000 m² at SAR 400 per square metre per year, SAR 800,000. On measurement, 400 m² turns out to be a basement for parking and plant rooms that cannot be used as offices. The company negotiates a basement rate of SAR 100 per square metre: 1,600 m² × 400 = SAR 640,000 and 400 m² × 100 = SAR 40,000, bringing the rent to SAR 680,000 instead of SAR 800,000. As the landlord is VAT-registered, 15% (SAR 102,000) is added, for a total of SAR 782,000. The contract makes the owner responsible for basement leaks and drainage pump maintenance.
⚠️ Common Mistakes
- ✗Counting basement area in the leased area at the same rate as upper floors without an express contract clause.
- ✗Converting a basement into housing, offices or commercial storage without the building permit and safety requirements allowing it.
- ✗Skipping inspection of waterproofing, drainage and ventilation before buying or leasing, then facing recurring leaks.
- ✗An owner taking over part of a shared basement for private storage without allocation by the owners' association.
- ✗Not specifying who maintains the pumps, generators and fire systems located in the basement.
🌍 International Differences
In the UK, licensed residential basement flats are common, whereas in many Gulf countries basements are limited to parking and services. In the UAE, basement parking in towers is either part of the shared facilities or allocated to specific units. In Turkey, lower-ground flats (bodrum kat) are common in older residential districts. The common thread is that basement use is governed by permits and safety requirements, not the owner's wishes alone.
FAQs
Is basement area included in the leased area?▾
Only if the contract says so. If the contract set a price per square metre and the usable area turns out smaller, the landlord must reduce the rent accordingly and the tenant may seek termination under the Civil Transactions Law.
Can a basement be used as living space?▾
A basement may not be used for housing or a commercial activity unless the building permit, municipal requirements and safety requirements on ventilation, emergency exits and fire fighting allow it.
Who owns the basement in a separately titled building?▾
Parking, tanks and services in it are common parts owned by all owners, unless part of it is partitioned as a separate unit such as a garage or allocated to a particular unit in the owners' association bylaws.
Who is responsible for water leaks in a basement?▾
In a leased building the landlord bears necessary repairs unless otherwise agreed, and in a jointly owned property common-part maintenance is paid from the owners' association budget. The contract should therefore assign responsibility for pumps and waterproofing expressly.
What should be checked in a basement before buying or leasing?▾
Waterproofing and signs of damp, drainage systems and pumps, ventilation, emergency exits and fire systems, and whether actual use matches the building permit.
