NEOM Emerges as Top Choice for Expatriates in Saudi Arabia
RIYADH — In a groundbreaking survey conducted by global property consultancy Knight Frank, NEOM has taken the lead as the most preferred Giga project among expatriates residing in Saudi Arabia. A staggering 29% of respondents expressed a strong desire to invest in homes within NEOM.
Jeddah Central and King Salman Park Follow Close Behind
The survey, part of Knight Frank’s first-ever Destination Saudi report, also highlighted Jeddah Central and King Salman Park as the second and third choices among expatriates, with 15% and 8% preferences respectively.
Insights from Expatriate Survey
Conducted among 241 expatriates, the comprehensive survey aimed to uncover real estate investment interests within the Kingdom. A notable 56% of respondents have called Saudi Arabia home for over a decade, with the majority (76%) employed in the private sector.
Interest in NEOM’s Specific Areas
Interest among expatriates within NEOM is divided, with 42% showing attraction towards The Line and 19% towards Sindalah Island. However, budget constraints may pose a challenge for both expatriates and developers.
Challenges and Opportunities for Expatriate Investors
The survey revealed that 87% of expatriates have a budget under SR3.5 million, with 32% aiming to spend below SR750,000. This contrasts with the expected pricing for Giga project properties, which may exceed $1 million. Nonetheless, 41% of respondents with budgets under $1 million remain interested, indicating a willingness to adapt their financial plans.
Positive Outlook for Giga Project Investments
Despite budget considerations, 72% of expatriates expressed a likelihood of proceeding with residential investments in preferred Giga projects. The average budget for expats purchasing homes in Giga projects stands at SR2.7 million, significantly higher than budgets for properties elsewhere in the Kingdom.
Expatriate Spending Power in Riyadh
Knight Frank’s analysis uncovered the substantial spending power of Riyadh’s expatriate community, estimated at SR3.2 billion ($863 million). This highlights the potential capital ready to be injected into Giga projects within the region.
Premiums for Living in Giga Projects
When considering the premiums expatriates are willing to pay for residing in Giga projects over non-Giga projects, the average premium hovers at 5.7%. A notable 32% of respondents are open to paying a 2.5-5% premium, while high-earning expatriates, especially those with monthly incomes exceeding SR40,000, displayed readiness to pay premiums ranging from 5-7.5%. — SG
