Saudi Arabia has made a significant change in its residency visa options, making it easier for affluent expatriates and investors to settle in the country. The move is expected to have a big impact on the demand for housing in Saudi Arabia.
According to a report by Knight Frank, a real estate consultancy, Saudi Arabia’s new premium residency visa program is a major shift in how the country handles residency and property ownership for non-Saudis. This change is likely to affect the housing market significantly.
The premium residency visa program, which was introduced in 2019, allows eligible foreigners to live in Saudi Arabia and enjoy benefits such as exemption from expat and dependents fees, visa-free travel, and the right to own property and start a business without a sponsor.
To attract more foreign talent and diversify the economy, Saudi Arabia added five new products to its premium residency program in January 2024. One of the most notable additions is the option for foreigners to own residential properties worth at least SR4 million ($1.07 million) in the Kingdom.
This threshold is set to encourage significant investments in real estate, potentially increasing demand for luxury properties and driving up property values. Additionally, developers are expected to expand their portfolios to include more high-end residential projects, which could transform the urban landscape of major cities like Riyadh, Jeddah, and Dammam.
The demand for branded residences in Saudi Arabia is also growing, according to Knight Frank. These residential offerings, associated with well-known brands, are attracting investments and are considered particularly attractive due to the assurance of quality service and maintenance.
NEOM, Saudi Arabia’s $500-billion mega-project, is emerging as the most preferred residential destination among expatriates. This futuristic city is capturing the interest of prospective buyers, with many expressing willingness to invest in homes there.
Overall, the average expatriate budget for a home in a mega-project is significantly higher than elsewhere in the Kingdom. Millennials, in particular, are showing a strong interest in owning property in these developments, signaling a promising future for developers.
