Saudi Arabia’s Real Estate Visa Program Attracts International Investors
Saudi Arabia’s introduction of a new real estate visa is set to significantly enhance investment opportunities in the country, according to the Knight Frank Destination Saudi report. This report highlights the potential for real estate investments by wealthy investors in the Kingdom.
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According to Knight Frank, Saudi Arabia’s introduction of Premium real estate visas is expected to draw affluent investors to the nation. The report reveals that Muslim high net worth individuals (HNWIs) are ready to invest up to $1.96 billion in real estate within the sacred cities of Makkah and Madinah. This insight comes from Knight Frank’s first Destination Saudi report, which surveyed 506 Muslim HNWIs across nine countries to gauge their interest and intentions regarding real estate investments in these holy cities.
The survey participants collectively own over 2,250 homes worldwide, with 29% possessing between three and five properties. Among these HNWIs, Makkah is the preferred city for real estate investments in Saudi Arabia, with 30% indicating it as their top choice, followed by Riyadh at 25%, and Madinah at 19%, highlighting its appeal as a target location for investments.
These findings are in line with the Saudi government’s announcement in January of new Premium Residency options, including visas linked to property ownership.
Faisal Durrani, Partner, Head of Research, MENA at Knight Frank, noted that the desire to live in Saudi Arabia is strong among visitors, with 84% of HNWIs interested in buying in Saudi Arabia favoring one of the Holy Cities. This desire is underscored by the fact that 48% of those looking to buy in Makkah plan to use their property as their primary residence.
Harmen de Jong, Regional Partner – Head of Consulting, MENA at Knight Frank, commented on the positive impact of the new Premium Visa for property owners, suggesting it will increase demand amid changing market dynamics and preferences for renting over owning among younger intra-Saudi migrants. This is especially relevant as the report indicates a nationwide decrease of 16% in residential sales volumes last year.
Furthermore, Knight Frank reported a 17% decrease in the total number of real estate transactions across all asset classes in Saudi Arabia during 2023, with the total value of deals falling by 9%.
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
Villa prices saw particularly strong growth, with capital values increasing by 33.4 percent year-on-year
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Dubai’s real estate market showed strong performance in the second quarter of 2024, with notable increases across the residential, office, and retail sectors, according to a new ValuStrat real estate report for Q2 2024.
Villa prices experienced particularly strong growth, with capital values rising by 33.4 percent year-on-year.
Haider Tuaima, Director and Head of Real Estate Research at ValuStrat said: “The Dubai real estate market has shown impressive growth and resilience in recent months. The ValuStrat Price Index for Residential Capital Values increased by 6.4 percent quarterly and 28.2 percent annually, reaching 178.2 points.
“Despite severe flooding caused by record rainfalls in April, the quick and effective response from developers and authorities helped to control the damage, ensuring that market activity and property valuations remained robust in the subsequent months.”
The office sector also performed well, with the VPI for office capital values surging by 31.7 percent annually and 9.4 percent quarterly, reaching 212.5 points—the highest quarterly increase in a decade.
In the retail sector, Emaar Properties reported 98 percent occupancy in their prime mall assets, while overall mall occupancy stood at 96 percent during the first quarter of 2024. The hospitality sector also saw growth, with total international guests reaching 8.12 million as of May 2024, a 9.9 percent increase compared to the same period last year. Hotel occupancy reached 81 percent, rising by 1.4 percent year-on-year.
Despite these positive indicators, Tuaima added, “The decline in transaction volumes calls for a closer examination of market dynamics as stakeholders navigate this evolving landscape.”
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
