Riyadh Expats Flocking to Buy Property Due to Premium Residency Visa
A recent survey conducted by global property consultancy Knight Frank has revealed that 77 percent of expatriates based in Saudi Arabia are now looking to purchase property, thanks to the new premium residency visa.
Millennials See Real Estate in Saudi Arabia as a Lucrative Investment
The survey highlighted that the primary motivation for expats, especially millennials, to buy property in the Kingdom is the perceived status of real estate as a good investment. Other factors such as proximity to work and cultural/religious considerations also play a significant role.
Preference for Completed Apartments Over Villas
Expats have shown a preference for completed apartments over villas, with a potential demand of $863 million for giga-project properties from the white-collar workforce. Branded residences have also caught the attention of higher-income brackets.
Challenges in Meeting Visa Threshold
While the newly introduced premium residency visa linked to property ownership aims to meet the demand, only 9 percent of respondents are willing to spend over SR3.5 million, below the visa threshold of SR4 million. Affordability remains a challenge for many expats.
Shift in Property Preferences Among Expats
The survey also revealed a notable shift in expat preferences, with 68 percent expressing a strong inclination towards owning apartments rather than villas. Factors such as affordability considerations and differing cultural preferences have influenced this shift.
Expats Eager to Invest in Giga-Projects
Expats, particularly high earners, are eager to invest in giga-projects in the Kingdom. The appeal of giga-projects such as NEOM is strong, with expats willing to reconsider their budgets to afford a residence in these developments.
Rising Popularity of Branded Residences
The survey also highlighted the rising popularity of branded residences in Saudi Arabia, presenting a lucrative opportunity for developers. Expats are willing to spend up to SR1.5 million on branded products, indicating a strong demand for these offerings.
Conclusion
Overall, the survey results reflect a growing interest among expats in purchasing property in Saudi Arabia, driven by factors such as investment potential, lifestyle preferences, and the appeal of giga-projects. Developers have the opportunity to capitalize on this demand by offering distinctive community features and amenities that cater to expat preferences.