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Saudi to allow foreigners to buy property: Reports

TBP Online
27 Mar 2023 18:36:18 | Update: 27 Mar 2023 18:45:39
Saudi to allow foreigners to buy property: Reports
— Representational Photo/AFP

Saudi Arabia is planning new laws which will allow foreigners to buy property anywhere in the Kingdom, according to a report by the Saudi Gazette.

Abdullah Alhammad, CEO of the Real Estate General Authority (REGA) said that a new law is under review is under development and will allow non-Saudi nationals to own property in all parts of the Kingdom, including Makkah and Madinah.

The major property rule updates will cover residential as well as commercial property.

Saudi real estate investment

Alhammad said, “The initial reading of the law shows that it allows foreigners to own property everywhere in the Kingdom, including Makkah and Madinah.

“The negative effects of foreign ownership of the property were monitored in advance so as to avoid them, and solutions were developed for all problems and unacceptable practices”.

The comments were made on the Al-Liwan program on Rotana Khalejia Television.

Villa prices in parts of Saudi Arabia have climbed more than 45 per cent in the past two years, dampening demand for many potential buyers.

Alhammad noted that the Kingdom’s open property market is subject to the laws of supply and demand, noting that increased property prices are not good for the burgeoning real estate sector in Saudi Arabia.

Saudi residents revealed that demand to buy a home has dropped in 2023 due to the increase in property prices, according to a survey by Knight Frank carried out in partnership with YouGov.

The kingdom’s properties have seen a strong price growth over the last two years, leading up to Vision 2030, the increase of prices is dampening demand for homes.

Last year, the demand for homes in Saudi was at 84 per cent, however, it has dropped to 40 per cent this year.

Faisal Durrani, Partner, Head of Middle East Research at Knight Frank, said, “The rapid escalation in house prices has undoubtedly cooled demand to purchase a home.

“With villa prices in Riyadh rising by 45 per cent over the last two years to over SAR5,000 per square metre – the highest level in at least seven years – the dream of home ownership, as well as the desire to own a second home is forcing households into a holding pattern.

“Indeed, the total number of homes sold in Riyadh fell by 34 per cent last year, while in Jeddah there has been a fall of 16 per cent.”