HOME SWEET (SECOND) HOME
One of the biggest areas of opportunity we have identified in the Kingdom is its burgeoning second homes market. In 2022, we quantified the size of the second homes market for the first time – 44% of homeowners were looking at an additional property purchase in Saudi Arabia.
18 March 2023
Desire for second homes still running high
Survey 1 reveals that this percentage remains high in 2023. 60% of our respondents will use a home they buy this year as their main home, implying that 40% are second home buyers, of those, 23% are planning to use their unit as a holiday home.
54% of buyers looking to make their property a primary residence are looking to purchase villas, with a further 28% looking to purchase large apartments with three to four bedrooms.
Amongst existing homeowners who are planning to purchase an additional property, only 33% are looking to buy within the next 12 months, while the remaining (67%) are looking to purchase within the next five years. Additionally, the majority of second-home buyers (49%) are looking to purchase off-plan properties, compared to 27% of first-home buyers or those looking to use the property as their primary residence.
Interestingly, Survey 1 reveals that women are more interested in buying holiday homes (61%) when compared to male respondents (39%). Culturally, it is very common that women, especially when married, perceive their husband’s house as their own; therefore, anecdotally, any additional home purchase is likely to be used as a holiday/second home instead of their primary residence.
The majority of second-home buyers are looking to purchase a property in Jeddah, as it has historically been known as a domestic holiday destination. Riyadh (35%) ranks second, while Makkah (17%) is placed third.
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