According to the inaugural "Destination Saudi" survey report published by Knight Frank, 77% of expatriates living in Saudi Arabia express a desire to purchase homes there, with this figure rising to 85% among those under the age of 35. The preferred cities for residence among expatriates in Saudi Arabia are Riyadh (44%), Jeddah (24%), and both Dammam and Medina (11% each).
The newly introduced premium residency visa, aimed at expatriates wishing to buy property in Saudi Arabia, sets a purchasing threshold of 4 million Saudi Riyals. However, the survey found that only 9% of expatriates are willing to spend more than 3.5 million Saudi Riyals on purchasing a home.
Despite the interest in buying, only 26% of expatriates plan to purchase a home this year, with 44% considering a purchase within the next 12 to 24 months. This cautious attitude may be due to the significant rise in Saudi house prices over the past three years. The majority of foreign buyers (63%) prefer to buy completed properties rather than off-plan, leading developers to compete in delivering over 660,000 units since 2016. As much as 75% of expatriates aim to spend no more than 1.5 million Saudi Riyals on Saudi properties, with nearly 40% unwilling to spend over 750,000 Saudi Riyals.
This is an important consideration for market developers; the average price for a two-bedroom apartment in Riyadh is around 800,000 Saudi Riyals (Jeddah around 700,000 Saudi Riyals), while a three-bedroom villa costs approximately 2.7 million Saudi Riyals in Riyadh and 2.8 million in Jeddah. Expatriates place high importance on local amenities when choosing their housing, such as supermarkets, clinics, dry cleaners (33%), management services (maintenance, security, reception) (30%), and transport facilities (dedicated parking, public transport access) (27%).
The government's target to achieve a 70% homeownership rate by 2030 (currently around 60%), supported by a series of mortgage assistance programs, has spurred domestic demand growth. The Saudi Tourism Authority's survey also indicates that while expatriates lean towards purchasing apartments, two-thirds of Saudi nationals prefer to buy villas, highlighting a stark contrast in housing preferences.