Realiste reports that residential property prices in Riyadh have surged by as much as 60% in just six months. The Saudi Arabian government has prioritized real estate in recent years as the country’s population has grown by over 20% between 1970 and 2020, with more than half under the age of 30. Many young people are moving from rural areas to cities like Riyadh in search of employment opportunities, leading to a plan to add 100,000 new homes to the capital by the end of 2023.
Additionally, the government’s Vision 2030 plan, which aims to transform the country’s economy and reduce its reliance on oil revenue, has spurred investments in futuristic cities to meet the increasing demand for housing. Saudi Arabia aims to construct eight new megacities, such as Neom, Qiddiya, Red Sea Project, Amaala, Al-Ula, Diriyah Gate, and others, by 2030, with almost $575B in investment dedicated to these projects.
This financing will facilitate the development of 1.3 million housing units. As a result of the construction boom in Saudi Arabia, property prices in Riyadh have been affected, according to reports. AI-driven research conducted by Realiste indicates a 9% increase in property prices over the past six months in Riyadh, with some districts experiencing up to 60% growth. Notably, Al Naseem and Al Hamra have seen the most significant increases with a 56% and 52% rise in prices, respectively.
Other areas experiencing growth over the same period include Al Nakheel (40%), Hijrat Laban (26%), and Al Nafil (25%). Realiste’s AI suggests that the most expensive areas of Riyadh are Al Nakheel, Al Rabee, and Al Malga, with average property prices ranging from SAR 7,962 to SAR 10,254 per square meter.
Meanwhile, the most affordable housing options are in Al Badi’ah, Al Dar Al Baida, and Al Shifa. Saudi Arabia plans to establish Riyadh as a hub for innovation in the MENA region, attracting more foreigners to the Kingdom by easing regulations and investing in future technologies and entrepreneurship.
The country aims to double the inflow of foreign direct investment by more than 18 times in the next decade and gain SAR 388B ($103B) annually. Realiste co-founder, Alex Galtsev, predicts that investments in Saudi property will yield significant returns, potentially growing by 100-200% over five years.
