_Apartment living gaining traction

Apartment living is more popular than ever

Our 2022 Saudi Report highlighted the depth of demand for apartment living among first-time buyers, particularly those below the age of 35. This was linked to decreasing household sizes, settling down with a family later in life, as well as balancing the pressures of rising house prices and the desire to migrate to other cities in the Kingdom for work.

However, the vast majority of respondents (c.40%) in 2022 were still looking to acquire large 3- or 4- bedroom apartments, with the promise of amenities being a key pull factor.

What tenants want

Survey 1 shows that 41% of respondents are not actively looking to purchase properties; instead, they are looking to remain tenants, especially those who recently migrated to a different city.

The majority of those who are tenants (86%) currently live in apartments, and if they were to move, 63% say that they prefer apartments of different sizes.

Economic migrants in favour of off-plan purchases

Among the growing temporary resident population, 68% are in favour of apartment living, according to Survey 1. In contrast, 50% of respondents living in their hometownsprefer apartment living. Shifting social dynamics, the likely temporary move for work and the desire for community living and its associated amenities while awayfrom ‘home’ are likely key motivators.

When it comes to buying, a completed property (54%) is the most desirable for house hunters. Interestingly, when filtering for migration status among our respondents, temporary economic migrants appear more willing to commit to off-plan purchases (41%) compared to those who are normally residents (32%). This may, in part, be due to the fact that temporary residents already own property in their hometowns – either directly or through the virtue of a family home – and so, an off-plan purchase may be considered a second home or buy-to-let investment.