Properties for Sale in Saudi Arabia

Saudi Arabia is an absolute theocratic monarchy with a cabinet of ministers. The highest legislative body is the King and Advisory Council. The kingdom is divided into 4 regions: Hijaz, Asir, Naj and Al-Hasa. Hijaz, located in the northwest, houses the most sacred Muslim destinations – Mecca and Medina, as well as one of the kingdom’s main ports, Jeddah. The largest cities are Riyadh, Jeddah, Dammam, Mecca and Medina.

The greatest demand for properties is in Riyadh, since many foreign specialists come to work in the capital. Real estate here can be divided into two main categories – villas and apartment buildings. Expats and their families often choose to live in dedicated compounds with private infrastructure, which includes a swimming pool, playgrounds, stores, beauty salons and gyms.

Buying real estate here must be for the purpose of owning a primary residence and not solely for investment. Foreigners face restrictions on owning property in certain areas, and the purchase process involves obtaining the necessary permits and approvals.

Foreigners can buy any type of real estate in Saudi Arabia, including apartments, villas and commercial properties. Buying a residence in Mecca or Medina is not possible, however, as purchasing property in these cities is only available to the citizens of the KSA and Middle Eastern countries. This restriction is based on religious considerations and non-Muslims are not allowed to enter these cities.

Purchasing real estate in the KSA can be an exceptionally wise decision, particularly for those who are considering a long-term investment strategy. The country, known for its financial prosperity, offers compelling prospects, including a notably low property price-to-rent ratio. For instance, according to Numbeo, this ratio in Ar-Riyadh was about 9.14, as of 2023. This indicates that investors can expect to recover their initial investment relatively quickly through the income generated by leasing the unit.

Furthermore, KSA is characterised by its robust economic stability and impressive projected growth. These factors indicate the substantial potential for property appreciation over time, demonstrating that the value of properties in Riyadh is likely to increase, thus yielding high returns on investment.

In addition to these financial benefits, the KSA boasts a low crime rate, ranking 12th in the Numbeo safety index in 2023, which significantly enhances the security of real estate in the city.

The Saudi Vision, a forward-looking plan for the Kingdom, has set a target for a considerable boost in the number of residents in Riyadh over the next decade. The population, which currently stands at approximately 7.8 million, as of Q1 2024, is projected to double or even possibly triple, reaching between 15 and 20 million by 2030.

This ambitious goal represents a monumental demographic shift, and the only feasible way to accommodate this surge in population in a sustainable and responsible manner is through a substantial increase in density. It necessitates a corresponding surge in demand for mid- and high-rise multi-family housing units to help transform Riyadh into one of the most liveable cities globally by 2030.