- Robust realty reforms and easier financing norms are driving homebuying in Saudi Arabia.
- Plans laid out by Saudi Arabia’s Crown Prince Mohammed bin Salman to boost home ownership to 70% by 2030 have seen a flurry of government incentives.
- Foreign and expatriate nationals can purchase property due to the mortgage registration process being simplified.
As part of Saudi Arabia’s ‘Vision 2030’ goals, the Saudi real estate sector is undergoing a vast transformation, with new incentives to attract wealthy nationals and internationals.
In response to Crown Prince Mohammed bin Salman’s plans to increase home ownership in Saudi Arabia to 70% by 2030, the government has implemented several incentives and initiated the construction of new housing developments.
Luxury houses for UK expats are in demand in cities such as Jeddah, Riyadh and Khobar due to access to high-end amenities, such as international schools, shopping malls and hospitals, all within a secure and family-friendly environment.
The demand for luxury real estate is mainly from skilled professionals, high net-worth individuals (HNWIs) and investors looking for long-term residences.
Real estate experts who spoke to Al Arabiya, an international Arabic media company, suggested that the factors driving demand for real estate in Saudi Arabia included better amenities, commuter suburbs and a more streamlined mortgage process.
Ramzi Darwish, the Head of Savills in Saudi Arabia, noted a growth in expatriate and local buyers showing interest in real estate in Saudi Arabia. The most prominent markets are around Riyadh, the holy cities and the various giga-projects.
Darwish also suggested that Saudi Arabia’s Real Estate General Authority has modernised property acquisition rules to let international HNWIs purchase property more efficiently in the Saudi marketplace – including the markets of Mecca and Medina, which were previously only open to Saudi nationals.
UK HNWIs considering moving to Saudi Arabia will need a secure way to make international payments between countries.
In addition to the recent reforms, foreign and expatriate nationals can now purchase property. The property registration process has been simplified and the mortgage system upgraded to enable the younger generations of wealthy Saudis to own homes.
The Vision 2030 initiative is on track to reach its target of 70% of homeowners – in 2020, the rate of homeowners in Saudi Arabia was 62%.
Wealthy internationals looking to invest in overseas luxury properties should utilise safe online money transfer services to complete their transaction.
HNWIs wishing to purchase real estate in Saudi Arabia can compare foreign exchange rates using our online money transfer comparison tool.