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
Kanoo Real Estate will provide access to its diverse portfolio of high-value assets and equipment
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Mazad, a local portfolio company of Bahrain Mumtalakat Holding Company (“Mumtalakat”), is delighted to announce a strategic partnership with Kanoo Real Estate, a subsidiary of the Yusuf bin Ahmed Kanoo Group, one of the region’s leading business conglomerates.
Under this partnership, Kanoo Real Estate will provide Mazad with access to its diverse portfolio of high-value assets and equipment, enhancing Mazad’s asset inventory and solidifying its position as the premier auction destination in Bahrain and the wider Gulf region.
“We are thrilled to be partnering with Kanoo Real Estate, which is a part of the Yusuf Bin Ahmed Kanoo Group, a pioneer in the regional business landscape,” said Talal Alaraifi CEO of Mazad. “Their extensive asset and business portfolio will be invaluable as we continue to grow our network and bring even more exceptional offerings to discerning buyers and investors in Bahrain and beyond.”
This partnership is mutually beneficial, allowing both organizations to leverage each other’s established relationships and industry insights, thereby enhancing the reach, variety, and quality of Mazad’s auctioning services.
Commenting on the occasion, Mr. Talal Fawzi Kanoo, Chairman of Kanoo Real Estate said: “We are thrilled to collaborate with Mazad, to further elevate the auction experience in the Kingdom of Bahrain. Through this partnership with Mazad, who continue to set the standard in the auctioning industry, we aim to enhance the local auction market by offering some of the most sought-after essential assets through an exceptional auctioning platform.”
Meanwhile, Mr. Mohamed Abdulelah Al Kooheji, Chief Executive Officer of Kanoo Real Estate, stated: “We are proud to join forces with Mazad, a renowned pioneer in the auction industry. This strategic partnership allows us to curate an exceptional auction experience, offering top-tier assets to the local market through an innovative and user-friendly auction platform.”
Further details about the specific initiatives and plans under this partnership will be announced in the coming weeks.
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
