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Saudi housing market to see $1.22 billion investment amid changing buyer preferences
Saudi nationals and expats intend to invest $489 million in the general residential market and $733 million in properties within giga-projects.
Saudi Arabia’s residential real estate market is set to draw $1.22 billion in private buyer spending this year, with NEOM emerging as the most sought-after location, according to property consultant Knight Frank.
Backed by the Public Investment Fund’s multi-billion-dollar investments, NEOM is a key pillar of Saudi Arabia’s Vision 2030—a massive urban and industrial development along the Red Sea coast, projected to accommodate nine million residents.
A survey of 1,037 households, including 100 expatriates in Saudi Arabia, found that Saudi nationals and expats plan to spend $489 million on general residential purchases and $733 million on properties within giga-projects.
While NEOM remains the top choice, its dominance has slightly decreased due to increased market options and a shortage of move-in-ready homes.
According to Faisal Durrani, Knight Frank’s head of research for the Middle East and North Africa, NEOM’s popularity has fallen from 84% in 2023 to 17% this year.
“There are likely to be a range of reasons for this, including the emergence of other giga-projects over the last two years, perceptions around households’ ability to afford to own a home in any of NEOM’s subprojects, a lack of ready-to-move-into homes, a lack of homes actually on the market to purchase, or a combination of the above,” he added.
Despite NEOM’s declining dominance, the report highlights a significant $733 million in potential private investment from Saudi nationals and expatriates in residential real estate within giga-projects.
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