Global Muslim Investors Eye Saudi Holy Cities for Real Estate Opportunities
Global Muslim High Net-Worth Individuals (HNWIs) are increasingly attracted to investing in properties within the sacred cities of Makkah and Madinah, influenced by significant visa and policy changes in Saudi Arabia, according to industry experts.
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These cities, known for their deep religious significance to Muslims, are becoming hotspots for real estate investment, thanks in part to the introduction of the Saudi Premium Residency visa. This new visa type allows wealthy investors to gain long-term residency and benefits in the kingdom, potentially revolutionizing the real estate markets of Makkah and Madinah by increasing investment flows, as noted by Mansoor Ahmed, Executive Director and Head of Development Solutions, Healthcare, Education and PPP, at Colliers MENA.
A Magnet for Spiritual and Financial Investments
Several factors contribute to the growing interest in real estate within these holy cities, including their religious importance, especially during Ramadan, and a strong desire for homeownership fueled by the Saudi Vision 2030 goals.
With the Premium Residency visas and other government initiatives easing access, investors find these opportunities both secure and appealing. Infrastructure enhancements and urban development projects further enhance these cities’ attractiveness for HNWIs looking for both spiritual and financial returns.
Anticipating a Real Estate Boom
A real estate investment surge is anticipated, with predictions of substantial residential demand in Madinah and a growing inclination towards luxury properties in both cities. Knight Frank’s reports highlight that global Muslim HNWIs are prepared to invest nearly $2 billion in these areas, with preferences leaning towards properties that offer views or proximity to the Grand Mosques.
This investment trend is also seen in the rising interest in off-plan properties, driven by the potential for competitive pricing and capital growth. However, challenges in meeting investor expectations regarding accessibility and inventory availability exist, presenting opportunities for innovative development strategies.
Additionally, there’s an emerging trend of terminally ill individuals seeking properties near these holy sites, highlighting the cities’ profound spiritual importance. This, along with the development of medical wellness resorts focused on religious and spiritual healing, underscores the multifaceted demand driving the real estate market in these cities.
Expanding Opportunities in Saudi’s Real Estate Sector
The possibility of expanding property ownership laws to allow foreigners to own real estate in the kingdom, including Makkah and Madinah, aligns with Saudi Arabia’s Vision 2030, positioning these cities as prime global investment and lifestyle destinations.
This evolving landscape suggests a sustained demand for premium properties, propelled by religious tourism, policy incentives, and infrastructure developments, according to Faisal Durrani, Partner and Head of Research at Knight Frank MENA.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
This collaboration will extend into the fourth phase of Azizi’s Riviera project in MBR City, with Cummins supplying top-tier power generators.
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Azizi Developments, a prominent private developer in the UAE, and Cummins Inc., a global leader in power solutions design, manufacturing, distribution, and supply, are extending their partnership into the fourth phase of the large-scale Riviera project. Cummins, known for its diverse range of products including diesel, natural gas, electric, and hybrid powertrains, as well as powertrain-related components, like filtration, after-treatment, turbochargers, fuel systems, control systems, air handling systems, automated transmissions, electric power generation systems, batteries, hydrogen generation, and fuel cell products. The manufacturer is globally renowned for its excellence in both innovation and sustainability.
Mr. Farhad Azizi, CEO of Azizi Developments, said: “As we continue our collaboration with Cummins Inc. for the fourth phase of our flagship project, Riviera, we reaffirm our commitment to procuring and utilizing only the highest quality materials. This partnership highlights our dedication to providing exceptional lifestyles for our investors and end-users through the careful selection of premium components. We are confident that our now-broadened alliance with Cummins Inc. will help in maintaining the high standards established for Riviera and further elevate the benchmarks of quality and excellence.”
Riviera is part of Azizi Developments’ award-winning portfolio. It is a stylish waterfront lifestyle destination that comprises 75 mid- and high-rise buildings with approximately 16,000 residences.
Designed to introduce the French-Mediterranean lifestyle to Dubai, which is not merely about architectural art, but also about a certain ‘joie de vivre’ — a celebration of life, an exultation of spirit, Riviera represents a new landmark destination that is both residential and commercial, with an abundance of retail space. Riviera features three districts: an extensive retail boulevard, a lagoon walk on the shores of its 2.7 km-long swimmable crystal lagoon with artisan eateries and boutiques, and Les Jardins — a vast, lush-green social space.
With its strategic location near the upcoming Meydan One Mall and the Meydan Racecourse — home of the Dubai World Cup — as well as Dubai’s most noteworthy points of interest, Riviera represents one of Azizi Developments’ most coveted projects.
Azizi Developments’ Sales Gallery can be visited on the 13th floor of the Conrad Hotel on Sheikh Zayed Road.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
