Riyadh, Saudi Arabia – Recent additions to Saudi Arabia’s premium residency visa programme are anticipated to bring about a seismic shift in the Kingdom’s real estate sphere, as indicated by a recent survey.
In 2019, a premium residency visa initiative was introduced to attract wealthy expatriates and investors. This initiative offers various privileges, such as exemption from expatriate and dependent fees, visa-free international travel, and the freedom to own real estate and run businesses without sponsorship. In January 2024, the government expanded the programme by introducing five new options. The most significant of these is the opportunity to own residential real estate assets valued at a minimum of SR4 million ($1.07 million) within the Kingdom.
The threshold of SR4 million, according to analysts, ensures large investments. It is expected that this will lead to an increase in high-value real estate transactions. Consequently, there might be a rise in the market for high-end and luxurious residential real estate, which would raise the prices of these types of properties.
The introduction of these fresh visa alternatives signifies a strategic move to open up the market to international investors and affluent expatriates seeking long-term residency in Saudi Arabia, according to experts.
Moreover, the demand for branded residences in Saudi Arabia is identified as a key catalyst for growth in the real estate sector. The report highlighted substantial investments in branded residential offerings, positioning Saudi Arabia as one of the most promising emerging markets globally. The increase in the number of high-net-worth individuals (HNWIs) in the Kingdom, rising from 122,784 to 134,539 between 2022 and 2023, is expected to further stimulate demand for branded residences.
“The exclusive nature of branded residences enhances their appeal. Additionally, the assurance of quality service and maintenance by associated brands renders these investments highly attractive, almost ensuring appreciation in asset value,” explained analysts.
The survey also revealed the preferences of expatriates regarding residential destinations in Saudi Arabia. NEOM, the $500-billion mega project, emerged as the most preferred location among expats, followed by Jeddah Central and King Salman Park.
Both foreign and domestic buyers are still attracted to these large developments. With its futuristic offerings, NEOM in particular has attracted a lot of interest, according to analysts.
Many expatriates are still interested in owning property in these mega-projects despite the high costs associated with them; an average budget of SR2.7 million can buy a home in such locations. It is noted that expatriates under the age of 35 show a higher level of financial ability, as confirmed by their average budgets, which are almost twice as large as those of older age groups. This implies that younger people are more enthusiastic about investing in Saudi Arabia’s ambitious projects, even with the high prices involved.
As the Kingdom’s real estate sector undergoes transformative shifts, developers are encouraged to prioritise offering unique community features and amenities to align with the evolving preferences of buyers. Open spaces and park views rank high on expatriates’ wish lists, underscoring a growing demand for well-conceived and attractive residential communities.
The introduction of Saudi Arabia’s latest premium residency visa options, coupled with the increasing interest in branded residences and mega-projects, signals a significant transformation in the Kingdom’s real estate landscape, presenting both challenges and opportunities for developers and investors alike.
[…] Saudi Arabia Premium Residency Visas for Real Estate Investors […]
Investment Requirement: Countries offering investor visas typically require a certain level of investment in real estate to qualify for the program. The investment threshold can vary significantly between countries and may depend on factors such as the location and type of property.