Riyadh Welcomes Affluent Expats and Investors with New Premium Residency Visa Options
A recent survey suggests that the Saudi government’s new additions to the premium residency visa options could potentially open up the Kingdom’s market to affluent expatriates and investors. This initiative marks a significant shift in the Kingdom’s approach to residency and property ownership by non-Saudis, with expected implications on the demand dynamics of residential properties.
New Premium Residency Program Enhancements
Introduced in 2019, the premium visa residency option aims to provide eligible foreigners with the opportunity to live in Saudi Arabia while enjoying benefits such as exemption from expat and dependents fees, visa-free international travel, and the right to own real estate and run a business without a sponsor. To attract more foreign talents and diversify the economy, the Kingdom added five new products to its premium residency program in January 2024.
Investment Threshold and Implications
One of the notable additions is the privilege to own residential real estate assets worth a minimum of SR4 million ($1.07 million) within the Kingdom. According to Knight Frank, this investment threshold is set to drive high-value transactions in the real estate market, potentially increasing the demand for luxury and high-end residential properties and driving up property values in these segments.
Urban Transformation and Developer Response
The premium residency visa option is expected to compel developers to expand their portfolios by incorporating more premium residential projects. This transformation is set to reshape the urban landscape of major cities in Saudi Arabia, including Riyadh, Jeddah, and Dammam.
Branded Residences Driving Growth
Knight Frank highlights the growing demand for branded residencies in Saudi Arabia, attributing it to the significant investments in these residential offerings. The consultancy firm sees Saudi Arabia as one of the most exciting new markets globally, with a surge in interest from high-net-worth individuals.
NEOM: Expats’ Preferred Giga-Project
Among the Kingdom’s mega projects, NEOM stands out as the most preferred residential destination among expats, followed by Jeddah Central and King Salman Park. Expats are particularly interested in The Line and Sindalah Island within NEOM, showcasing a strong appeal for futuristic offerings.
Expats’ Budget and Preferences
The survey reveals that expatriates are willing to spend under SR3.75 million to own a home in NEOM, with some considering budgets below SR750,000. While challenges for developers may arise due to pricing expectations, the overall interest in giga-projects remains high.
Millennial Expats and Community Features
Millennial expats below the age of 35 have the highest average budgets for giga-project homes, indicating a strong interest in unique community features and amenities. High-earning expats are eager to invest in distinctive properties, emphasizing the importance of offering exceptional living experiences in Saudi Arabia’s giga-projects.