With the 2030 Vision that aims to diversify the national economy and reduce reliance on oil, the residential real estate in major Saudi cities is undergoing a profound transformation.
So, let’s discover what this sector hides from investment treasures and unique opportunities, including megaprojects and the expansion of homeownership opportunities.
Opportunities of Residential Real Estate in Major Saudi Cities
The Saudi real estate market is one of the most prominent markets in the whole region, including multiple options accompanied by diverse opportunities.
During the last years, it witnessed a great transformation and revolution in the increasing demand on properties, because it flew with Saudi’s launched initiatives and efforts. Such as, increasing the ownership of citizens to 70% till 2030 through multiple programs like:
- Sakani Program.
- Wafi Platform.
- Ejar Platform.
Also, numerous megaprojects were launched by NEOM, Qiddiyah and Roshn, which led to increased demand on residential projects in major cities like Riyadh, Jeddah and Dammam.
Growth of residential real estate in Saudi Arabia
Although residential real estate markets experience price volatility, the sector has continued to show strong growth and high levels of activity. This includes the major Saudi cities such as Riyadh, Jeddah and Dammam.
This momentum is largely attributed to population growth, major government led projects and the urban development initiatives driven by the 2030 vision. Below is a snapshot of the real estate market in three of Saudi Arabia’s leading cities.
Also read about: The Small Cap Investment in Saudi Arabia.
Riyadh (The Capital)
Riyadh is the administrative and political capital, as well as the largest city in the Kingdom. This belongs to the features that it treasures, such as the developed infrastructure, including the facilitated transportation and new neighborhoods.
All of these features caused a great increase in residential unit prices in the city, especially apartments and villas.
Jeddah
Jeddah is considered as one of the prominent attractive cities in Saudi Arabia, according to its strategic location on the western coast. Also, it is deemed as a key economical and tourist center.
The real estate market in this city is featured by the diverse residential options, starting from the luxurious villas till the modern residential complexes.
Dammam and Khobar
Dammam and Khobar Cities are the beating heart of the Eastern Province, they live a fast growing development and economy. Also, their strategic location made them a favorite destination for real estate investors.
The demand on residential units increases annually, including an average of 6-9%, also 6-8% for rents. In addition to the attractive and vital markets that made all residents look for a chance to live there.
Factors Affecting Residential Real Estate in Major Cities
Actually, plenty reasons play an important role of affecting the real estate market, for example:
- Economic factors like overall economic growth, inflation and oil prices.
- Social factors, such as population growth and internal migration.
- Government policies that promote real estate investment and major projects.
- Supply and demand, where higher demand drives prices up.
- Also lower demand pushes them down.
- Infrastructure and urban development with nearby projects and services.
Ultimately, the residential real estate in major Saudi cities embodies a cornerstone of diversifying the Kingdom’s economy. Bayut Blog offers you the chance to explore all of these procedures and operations to find your path to invest in Saudi.
