Real estate in Saudi Arabia

Real estate in Saudi Arabia

Jeddah, Saudi Arabia
Entrance
Entrance
⇓ 1050k $
Income
Income
14%
Exit
Exit
⇑ 1714k $
1 050 000 $
Jeddah, Saudi Arabia
Entrance
Entrance
⇓ 2129k $
Income
Income
14%
Exit
Exit
⇑ 3475k $
2 129 000 $
Jeddah, Saudi Arabia
Entrance
Entrance
⇓ 2616k $
Income
Income
14%
Exit
Exit
⇑ 4269k $
2 616 000 $
Riyadh, Saudi Arabia
Entrance
Entrance
⇓ 634k $
Income
Income
7%
Exit
Exit
⇑ 831k $
634 000 $
Riyadh, Saudi Arabia
Entrance
Entrance
⇓ 917k $
Income
Income
7%
Exit
Exit
⇑ 1201k $
917 000 $
Riyadh, Saudi Arabia
Entrance
Entrance
⇓ 924k $
Income
Income
18%
Exit
Exit
⇑ 1643k $
924 000 $
Riyadh, Saudi Arabia
Entrance
Entrance
⇓ 817k $
Income
Income
15%
Exit
Exit
⇑ 1332k $
817 000 $

    Real Estate Investments in Saudi Arabia

    Purchasing and managing a real estate portfolio remains one of the most reliable ways to preserve and increase capital. When creating a successful real estate portfolio, an important role is played by the correct choice of an expert company that will help develop an effective investment model.

    Expert company in the international real estate and investment market Velesclub Int. Since 2015, it has successfully occupied a leading position in the field of investment in international real estate. Our services already cover more than 22 countries around the world, we are growing and developing every day.

    Economy of Saudi Arabia, statistics and expert assessment.

    The largest economy in the Middle East and 18th in the world. Currently, Saudi Arabia is one of the largest reformers in the world, implementing large-scale economic and social changes. The goal of the strategy: by 2030, move from a closed economy under state control to a free market with an emphasis on private entrepreneurship and minimize the economy’s dependence on the oil and gas sector and production volumes.

    Previously, Saudi Arabia was often called a conservative and even closed country when it came to attracting foreign business and foreign investment. “Strategy 2030” has changed both Saudi Arabia’s position on this issue and the opinion of the world community as a whole. The country has chosen a course for a large-scale transformation of industry, has focused on the issue of stimulating innovation and is actively working on strengthening its position on the world stage.

    Let's look at the statistics:

    According to the Saudi Arabian Ministry of Finance, the country's GDP growth rate for 2023 should decrease by 0.03%, which is due to the Saudi Arabian government's decision to voluntarily reduce oil production by 1 million barrels per day as part of the OPEC+ agreement in June. Initially, the measure was intended for July with the possibility of extension. This reduction was then extended several times and will remain in effect until the end of the year. The country's budget deficit could amount to 2% of GDP, or 82 billion rials (previously, the Ministry assumed a surplus of 0.4%).

    “Over the past 7 years, Saudi Arabia has carried out more than 700 different economic reforms in nine main areas: the business environment, the efficiency of public services, the organization of labor in the country, the transparency of technological innovations and their accountability, investment and finance, health and education. , which certainly leads to sustainable and dynamic development of the Kingdom’s economy. By 2030, Saudi Arabia has every chance to enter the TOP 10 most competitive economies in the world. Investors should take a very careful look at this jurisdiction and not miss the opportunity to increase their investment portfolio.” - summarizes the Head of Analytics and Investment Block of VelesClub Int. Ksenia Shamitko.

    Real estate in Saudi Arabia, investment opportunities and facts
     
    As part of Vision 2030, the development of the real estate sector was identified by Saudi Arabia as one of the key ones. The country's Ministry of Housing has set a plan to build 300,000 housing units over 5 years together with the private sector.

    Since the country has stabilized from the effects of COVID-19, the receipt of mortgage loans is growing at a high rate every year. The largest is for residential villas (as much as 80%) of the total volume of mortgage loans. Construction activity in the housing market is stable, especially in the large cities of Riyadh and Jeddah, where a large number of diverse development projects are being implemented from year to year.

    Saudi Arabia pays great attention to business relocation and creates favorable conditions for foreign companies. The Kingdom took the initiative to encourage foreign companies and exempted them from income tax, and also obliged all foreign companies with contracts with the government to move their head offices to Saudi Arabia. These measures have led to stimulation of the construction industry and the need for a large number of office and commercial premises. According to statistics, every year about 100 multinational companies (technology, consulting and construction, drinks and food) receive licenses to move their regional headquarters and to establish main regional offices (for example PepsiCo, Deloitte, PwC and Bechtel) in Riyadh , thereby gaining direct access to participate in the transformation of the region's largest economy. The Saudi Arabian market is characterized by fairly high competition and growing demand for primary real estate due to increased commercial activity and increased competition. The market is expected to witness aggressive competition between local and international developers. Saudi Arabian companies will be forced to radically change their strategies and adopt international standards and practices.

    How is the purchase of real estate in Saudi Arabia regulated for foreigners?

    To purchase real estate in Saudi Arabia, foreign investors and buyers should seek help from companies that are experts in the international real estate and investment market, such as VelesClub Int., to avoid mistakes. The Saudi government has created a legal framework to regulate the purchase of real estate by foreigners and requires strict compliance with it.

    Let's talk about a number of possibilities:

    • Before making transactions in the Kingdom, you must obtain an investment license from the Saudi Arabian General Investment Authority;
    • In Saudi Arabia, foreigners can only own land in certain areas and subject to certain conditions;
    • It is possible to invest in real estate in Saudi Arabia through companies registered in the Kingdom, which greatly facilitates the process of compliance with local legislation.

    “To avoid mistakes, enlist the support of experts and Saudi Arabia will undoubtedly become the ideal place for you to build investment potential and diversify your real estate portfolio.” – summarizes the General Managing Partner of VelesClub Int. Sergey Tumanov.

    Any investment in real estate requires evaluation and balance, and complete trust in market experts. A team of experienced managers at VelesClub Int. I am always ready to answer all your questions and accompany you at all stages of the transaction and subsequent reinvestment and diversification of your investment portfolio.

    Buy Property in Saudi Arabia: A Guide to an Evolving Housing Market

    Saudi Arabia, the Middle East’s largest economy, is undergoing a transformation that extends beyond its traditional reliance on oil, propelled by the bold Vision 2030 agenda. This push for modernization has revitalized the kingdom’s residential real estate sector, offering opportunities for both domestic and international buyers. If you’re looking to buy residential property in Saudi Arabia, you’ll find a market that’s more accessible than ever, thanks to improved regulations, rising urban demand, and government incentives aimed at homeownership.
    Major cities like Riyadh, Jeddah, and Dammam are experiencing accelerated development, unveiling contemporary neighborhoods and infrastructure upgrades. The influx of young professionals, expatriates, and families, coupled with state-backed mortgage facilitation, underscores the Saudi Arabia property investment landscape as a viable path to rental yield and asset appreciation. Yet, foreign investors must understand the local ownership rules—particularly regarding restricted zones and required documentation—to maximize returns in the evolving residential market in Saudi Arabia.

    Saudi Arabia Property Investment: Key Growth Drivers

    1.    Vision 2030 Boosting Housing Demand
    Vision 2030’s core objective is economic diversification and social reform. Through this framework, the government channels funds into real estate, infrastructure, and private-sector projects, fueling a steady need for new housing. Programs that incentivize homeownership and ease regulatory hurdles further stimulate apartments for sale in Riyadh and other urban markets.
        2.    Mortgage Options for Foreign Investors in KSA
    Though still somewhat limited, mortgage products have become more available to non-Saudis. Certain local banks and financial institutions extend loans to expatriates or foreign investors, albeit with stricter terms (like higher down payments). When feasible, these mortgage options can amplify purchasing power and diversify a real estate portfolio.
        3.    Potential for Rental Income in Saudi Arabia
    Rapid urbanization, a youthful populace, and a low supply of rental housing underscore the rental appeal in places like Riyadh, Jeddah, and Dammam. Mid-tier and upscale apartments or villas for sale in Jeddah can target salaried expats, local professionals, and families, ensuring stable demand. Investors who offer modern amenities often command higher rents, especially in prime neighborhoods.
        4.    Government Housing Initiatives
    To address local housing shortages, Saudi authorities partner with developers on large-scale residential projects. These initiatives may incorporate subsidized mortgages, reduced land costs, or streamlined approvals—transforming once-vacant areas into burgeoning communities. Properties near these emerging zones can experience enhanced marketability and future capital gains.

    Apartments for Sale in Riyadh: The Vibrant Capital

    Riyadh, the kingdom’s political and commercial epicenter, exemplifies Saudi Arabia’s drive toward modernization:
        1.    Expat-Friendly Developments
    Riyadh’s evolving central districts and business corridors regularly attract multinational firms, drawing expats in need of quality housing. Upscale apartments for sale in Riyadh near commercial hubs ensure quick commutes for professional tenants—facilitating above-average rents and consistent occupancy.
        2.    Master-Planned Communities
    Expanding highways and the soon-to-be-operational Riyadh Metro help anchor master-planned neighborhoods that include malls, schools, and green spaces. Purchasing in or near these suburban districts can offer long-term appreciation and a family-friendly environment, appealing to middle- and upper-income residents.
        3.    Mortgage and Financing Possibilities
    While foreign buyers still face tighter scrutiny, the Riyadh market offers broader loan products than in the past. Large down payments or local sponsorships often apply, but success in securing financing can lead to amplified returns if property values keep rising amid growing population and commerce.

    Villas for Sale in Jeddah: Coastal Lifestyle and Rental Prospects

    Jeddah, perched on the Red Sea, balances commerce and leisure, making it a prime location for Saudi Arabia property investment:
        1.    Best Neighborhoods for Expats in KSA
    In Jeddah, upscale communities—often near the waterfront—cater to foreign workers and their families. Modern villas outfitted with security, playgrounds, and communal areas fetch higher rents. Proximity to international schools and retail complexes makes these areas particularly attractive.
        2.    Waterfront Development
    Jeddah’s planned projects along the Corniche highlight marinas, entertainment hubs, and family-friendly zones that boost real estate values in nearby districts. Buying villas for sale in Jeddah near these coastal projects can lock in capital gains as infrastructure matures.
        3.    Rising Property Values in Major Saudi Cities
    Although Jeddah remains smaller than Riyadh, it serves as a prominent trade gateway, ensuring steady demand. Investors who provide added amenities—private pools, extra living space—can secure above-average rental rates. Short-term rental options, though less common, may also grow if tourist arrivals expand.

    Property Market in Saudi Arabia: Notable Trends

    1.    Vision 2030 Boosting Housing Demand
    With the government promoting public-private partnerships, the construction of modern housing keeps pace with an increasing urban population. Alongside policy enhancements, tax breaks or reduced fees draw real estate developers, meaning foreign buyers can benefit from supply expansions aligned to local tastes.
        2.    Government Housing Initiatives
    Projects like Sakani enable Saudis to obtain subsidized loans or land, accelerating the shift toward homeownership. Developers capitalizing on these programs raise local housing stock in commuter zones, offering investor-friendly entry points if foreigners can legally buy or partner in those areas.
        3.    Expat-Friendly Residential Communities
    The kingdom gradually relaxes social codes, paving the way for integrated living spaces that blend modern lifestyles with traditional values. Secure, compound-style communities often entice expatriate professionals who want recreational facilities and convenience, providing stable occupancy and potential for premium rental yields.

    Key Considerations for Investors in Saudi Arabia

    1.    Legal and Ownership Restrictions
    While Saudi law increasingly permits foreign real estate purchases, especially in designated zones, restrictions remain. Non-GCC buyers must clarify each property’s regulatory framework, especially for off-plan or newly constructed projects. Consult local experts to confirm title transfer processes and permissible investment areas.
        2.    Financing and Risk Management
    Expatriates may access mortgages through certain Saudi banks, albeit under strict conditions. Balancing loan costs with rental income projections is vital, as is ensuring thorough property inspections and market analyses. Partnerships or local management can mitigate challenges like language barriers and legal nuances.
        3.    Potential for Rental Income
    A combination of an undersupplied housing market, an increasing workforce, and limited private rental stock raises the appeal of Saudi rentals. To secure a stable tenant base, emphasize location (commute distances, schools, retail access) and design features (parking, fitness, communal areas).
        4.    Exit Strategies
    Holding periods vary depending on whether you seek short-term flips or longer-term rental yields. Resale prospects hinge on future infrastructure, commercial expansions, or policy changes that might affect property values. Monitoring project rollouts and government announcements guides timing for maximum ROI.

    Conclusion: Exploring Saudi Arabia’s Residential Market
    From contemporary apartments for sale in Riyadh to premium villas for sale in Jeddah, Saudi Arabia’s changing environment presents a potentially rewarding landscape for foreign and local investors alike. Vision 2030 accelerates the kingdom’s shift toward modernization, boosting housing demand in new neighborhoods and pushing mortgage reforms that ease entry barriers. Even with certain legal limitations on property ownership, strategic buyers who adapt to local rules can benefit from rising property values in major Saudi cities and potential for rental income.
    Undertaking thorough research—covering financing routes, best neighborhoods for expats in KSA, and the status of government-backed housing programs—enables informed decisions. By aligning properties with Saudi Arabia’s growing workforce, evolving lifestyle preferences, and robust economic ambitions, real estate investors can take advantage of the kingdom’s shifting dynamics for short-term gains and enduring value.

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