_Is Saudi Arabia the New Home? Expats Explore Pathways to Property Ownership

Expatriates residing in Saudi Arabia are increasingly looking towards homeownership, with a 77% expressing a desire to own a property in the Kingdom, according to Knight Frank's Destination Saudi report. This aspiration is even more pronounced among the younger demographic, with 85% of those under 35 years old aspiring to own a home.

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Where Do Expats Prefer to Invest?

Riyadh emerges as the top choice for expat homeownership, with 44% expressing interest, followed by Jeddah at 24%. Dammam and Madinah also feature prominently, each garnering an 11% share of expatriate interest. Knight Frank's survey of 241 expatriates shed light on their attitudes and aspirations towards real estate investment, revealing that 56% have been residents in the Kingdom for over a decade, primarily working in the private sector.

What Drives Expats' Property Preferences?

The announcement of the Premium Residency visa, linked to property ownership, is expected to further strengthen expatriate interest in real estate investment. However, despite the enthusiasm, only 26% of expats are looking to transact within the year, with the majority preferring to wait 12-24 months, possibly influenced by recent house price escalations.

Interestingly, 75% of expats are willing to allocate under SAR 1.5 million for a property purchase, highlighting the importance of affordability in their decision-making process. This preference for affordability is mirrored in their preference towards apartments over villas, with 68% expressing a preference for the former.

Knight Frank's research underscores the growing demand for community living among expats, with access to essential amenities, management services, and transport facilities being key considerations. However, the report also highlights a gap in the provision of such amenities in many cities across the Kingdom, indicating potential areas for development.

Why is Community Living Gaining Traction Among Expats?

The desire for homeownership among expats is not solely driven by investment opportunities but also by factors such as proximity to work and cultural affinity. This nuanced understanding of expatriate preferences is crucial for developers and representatives alike as they navigate the evolving real estate landscape in Saudi Arabia.

Knight Frank's Destination Saudi report offers valuable insights into the motivations, preferences, and challenges faced by expatriates in their quest for homeownership in the Kingdom. By addressing these insights, stakeholders can better cater to the needs of this growing demographic and foster a more inclusive and vibrant residential market.

To know more, download our latest research report, Destination Saudi, 2024.