NEOM has emerged to be the most preferred destination to purchase homes for Saudi buyers and GCC high-net-worth individuals, according to Knight Frank’s flagship 2023 Saudi Report.
The destination has remained a preferred destination for the second year in a row, last year, The Red Sea and Diriyah took second and third places. For 2023, Jeddah Central and King Salman Park are the new preferred targets on the charts.
Durrani added, “The Red Sea Project has slipped to fifth place and this is most likely due to the fact that it is among one of the most advanced Giga projects, in terms of its development – it is increasingly clear that it is a luxury holiday destination, with an emerging high-end second homes market. Similarly, Diriyah Gate, which fell to sixth place overall, too is being positioned as a high-end residential destination.”
Faisal Durrani, real estate, neom, dubaiFaisal Durrani, partner and head of Middle East Research for Knight Frank
AlUla is also a destination attracting big spenders, with buyers willing to spend upwards of SAR5.5 million in the historic city.
According to the research, the bulk of investors are looking to spend SAR1.5 million.
“The lack of local financing options for international buyers and investors is often seen as a barrier to the development of a flourishing investment market in any part of the world and the same is likely true in the kingdom, at least for the time being. The fact that so many GCC-based HNWI are keen on local debt financing options strongly hints at powerful lever that has the potential to radically alter the residential market’s demand dynamics,” Durrani concluded.