Saudi Arabia’s residential real estate market is set to experience a major boost, with private buyers expected to invest SR4.58 billion ($1.22 billion) this year. This insight comes from a study by Knight Frank and YouGov, showing growing interest in the Kingdom’s large development projects.
- Big Investments Ready: SR2.75 billion in private capital, including SR2.62 billion from Saudi nationals and SR133.7 million from expats, is ready to be invested into the Kingdom’s huge development projects. The survey included 1,037 households, including 100 expats.
- NEOM Remains the Top Choice: NEOM, one of the Kingdom’s major projects, is still the most popular destination for high earners. 41% of people earning over SR80,000 per month are ready to spend more than SR20 million on homes in NEOM. However, NEOM’s popularity has dropped, with only 17% of people choosing it this year, down from 84% in 2023. The decline is due to concerns about high costs, a shortage of ready homes, and the rise of other large projects.
- Other Popular Projects: Although NEOM remains popular, other projects like Jeddah Central, The Red Sea Project, and King Salman Park are attracting more attention. These projects are appealing to people earning SR40,000 to SR50,000 per month.
- Expats and Giga-Projects: Expats earning over SR30,000 per month still prefer NEOM, but 20% of expats have no interest in buying homes in any of the big projects. This is likely because of uncertainty around property availability, ownership rules for expats, and financing options. However, interest may grow once foreign ownership laws are updated.
- ROSHN’s Growing Popularity: ROSHN, Saudi Arabia’s top residential developer, is becoming more popular. Their SEDRA development in Riyadh is the most sought-after project, with 39% of people choosing it as their top option. ROSHN focuses on affordable homes in community settings, making them highly appealing.
Saudi Arabia’s real estate market is rapidly changing, with investments flowing into major development projects. NEOM has already awarded $28.7 billion in construction contracts, including $10.5 billion for The Line, and the Kingdom is set to see more growth in the coming years.
As more people look to invest in Saudi Arabia’s real estate, the market is on track for a dynamic year ahead. With new laws for foreign buyers and growing investor interest, the future of Saudi’s real estate market looks very promising.
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