Foreign buyers regard the Saudi NEOM project as their preferred investment in Saudi Arabia. According to a survey by the global real estate consultancy Knight Frank International, NEOM is the favorite mega project among foreign residents in Saudi Arabia, with 29% of respondents expressing interest in buying property there.

The Saudi authorities refer to the ongoing series of mega projects being developed as Giga projects, including NEOM, the Red Sea tourism development project, Qiddiya, ROSHN housing project, and Diriyah. These projects have attracted the attention of foreign buyers.

The survey shows that within specific areas of NEOM, The Line attracted 42% of foreign buyers, while Sindalah Island attracted 19%. However, despite the interest in the NEOM project, budget constraints might be a challenge for both foreign buyers and developers.

Internet

According to survey results, the average budget of foreign buyers for participating in property purchases in mega projects is 2.7 million Saudi riyals, significantly higher than the budget for buying property in other areas of Saudi Arabia. 87% of foreign buyers have a budget below 3.5 million riyals, with 32% hoping to spend less than 750,000 riyals.

However, foreign buyers still demonstrate strong purchasing power. It is estimated that the spending power of the expatriate community in Riyadh alone amounts to 3.2 billion Saudi riyals ($863 million), indicating the potential capital available for investing in mega projects.

Furthermore, high-income foreign buyers, especially those with monthly incomes exceeding 40,000 riyals, express willingness to pay premiums of 5-7.5%. This further demonstrates the interest and investment willingness of foreign buyers in the Saudi real estate market.

In March 2024, Saudi Arabia's real estate market showed active trends. The month recorded approximately 26,000 real estate transactions, with a total area exceeding 88 million square meters and a total value of approximately 33.5 billion riyals. The average selling price of real estate is estimated at 378 riyals per square meter, setting a record for the highest property selling price.

In different districts, Al-Nadhem district in Riyadh ranked first with 864 transactions, with an average price of 1,257 riyals. This was followed by Al-Narjis district in Riyadh with 476 transactions, with an average price of 6,665 riyals per square meter. Al-Khair district in Riyadh ranked third with 421 transactions, with an average price of 1,746 riyals per square meter.