This Saudi Location Ranks First for Expat Homebuyers!

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According to a recent survey by global property consultancy Knight Frank, NEOM stands out as the preferred Giga project among expatriates residing in Saudi Arabia. The survey, part of Knight Frank’s inaugural Destination Saudi report, involved 241 expatriates and aimed to gauge their real estate investment interests within the Kingdom. NEOM garnered the highest preference with 29% of respondents expressing a desire to purchase homes there, surpassing other notable projects like Jeddah Central and King Salman Park.

Insights from the Survey

The survey revealed that a significant proportion of expatriates (56%) have been residents in Saudi Arabia for over a decade, with a majority (76%) employed in the private sector. Despite the high interest in NEOM, budget considerations pose challenges for both expatriates and developers. While 87% of expatriate respondents have a budget under SR3.5 million, the anticipated pricing for Giga project properties is expected to exceed $1 million. However, 41% of respondents with budgets under $1 million remain interested, indicating a willingness to adjust their financial plans.

Likelihood of Investment and Spending Power

Despite budget limitations, the survey indicates a high probability of expatriates making residential purchases in preferred Giga projects, with 72% expressing readiness to proceed with such investments. The average budget for expats eyeing Giga project homes stands at SR2.7 million, significantly higher than budgets allocated for properties elsewhere in the Kingdom. Knight Frank’s analysis also highlights the substantial spending power within Riyadh’s expatriate community, estimated at SR3.2 billion ($863 million), suggesting significant capital available for investment in Giga projects.

Premiums for Giga Projects

Expatriates are willing to pay premiums for living in Giga projects, with the average premium standing at 5.7%. Notably, high-earning expatriates, particularly those with monthly incomes over SR40,000, showed readiness to pay premiums of 5-7.5%.