The residential real estate market in Saudi Arabia is experiencing growing investment momentum, with private buyers expected to spend more than $1.22 billion through 2025, according to a report released Tuesday by real estate consultancy Knight Frank.
.The Neom project remains one of the most attractive real estate destinations, but is experiencing a marked decline in interest, with other mega-projects competing with it.
Neom remains one of the most attractive real estate destinations, but is seeing a marked decline in interest, with other mega-projects competing for investors. The report confirmed that the Neom project remains one of the most attractive real estate destinations, but is seeing a marked decline in interest as other mega-projects emerge.
The report's data showed that investor interest in buying real estate in NEOM has waned, dropping from 84% in 2023 to 17% this year. According to Knight Frank's head of MENA research, Faisal Durrani, this decline is due to several reasons, most notably: The emergence of new megaprojects that offer attractive housing options, challenges related to the cost of owning real estate in NEOM compared to other destinations, and the scarcity of ready-to-sell homes within the project, which affected buyers" decisions.
These changes confirm that the Saudi real estate market is witnessing a reshaping of the investment map, as investors turn their attention to more diversified and sustainable projects. As capital continues to flow into the real estate sector, the Kingdom remains at the heart of economic transformations, bolstered by major projects that will reshape the residential and investment landscape in the coming years. These changes confirm that the Saudi real estate market is undergoing a reshaping of the investment map.
Billion-dollar investments reshape the real estate market
<As part of Saudi Vision 2030, the Kingdom, through the Public Investment Fund (PIF), has invested heavily in urban and industrial projects, most notably NEOM, a project that spans an area roughly the size of Belgium and is expected to accommodate 9 million people when completed. The project, located on the Red Sea coast, is a cornerstone of Saudi Arabia's efforts to diversify its economy and reduce dependence on oil.
Growing interest in residential real estate and megaprojects
<According to a Knight Frank survey of 1,037 Saudi households, citizens and residents intend to invest $489 million in residential real estate within the Kingdom, while allocating around $733 million to invest in mega-projects. Although NEOM retains its appeal among investors, the report revealed a shift in buyers“ priorities due to various factors.
Neom loses its lead to competing projects
The real estate market is in transition
