Saudi branded residential sector set for US$ 953 million boost as buyers line up

• 26% of Saudi nationals and Saudi-based expats prepared to spend SAR 20,000-30,000 (US$ 5,300-8,000) per square metre on a branded residence 

• 81% of Saudi nationals earning over SAR 50,000 a month are likely to purchase a branded residence in the Kingdom 

• 39% of Saudi nationals and Saudi-based expats would like to buy a branded home for personal use 

Riyadh/Jeddah | 16 April 2025: SAR 3.57 billion (US$ 953 million) of private capital is set to be deployed into Saudi Arabia’s branded residential market, with more than two-thirds of Saudi nationals surveyed intending to buy a branded residence, according to The Saudi Report 2025 from global property consultant Knight Frank. 

Knight Frank’s flagship survey of 1,037 households across the Kingdom, including 100 Saudi-based expats, carried out in partnership with YouGov, found that Saudi nationals plan to spend SAR 3.38 billion (US$ 902.8 million on branded homes, with expats prepared to purchase branded residential real estate worth a further SAR 187.7 million (US$ 50 million). 

STRONG DEMAND 

The likelihood of buying a branded residence is closely correlated with income and social status, according to Knight Frank. Indeed, 81% of Saudi nationals earning over SAR 50,000 a month are ‘likely’ to purchase a branded residence in the Kingdom. 

The group with the highest desire to own a branded residence (at 89%) are Saudi nationals earning between SAR 60,000 and 70,000 per month, said Knight Frank. 

Faisal Durrani, Partner – Head of Middle East Research, said: “The branded residential sector in Saudi continues to emerge, with locations such as Riyadh’s Diriyah Gate, Al Ula and Jeddah standing out as key hotspots for branded residential operators and developers. Historically, the branded residential market in the Kingdom has been a relatively small segment of the residential sector, but this is changing rapidly. 

The prestige factor, but more importantly the virtual guarantee of world-class facilities and property management, combined with the ability to instantly access a certain lifestyle, ‘live the brand’ and place your home in a rental pool are adding to the allure of branded residential acquisitions in the Kingdom. Indeed, two-thirds of Saudi nationals in our survey have declared an intent to purchase a branded home”. 

Knight Frank said that perhaps due to uncertain long-term residency plans, and/or yet to emerge clarity on international home-ownership rules and regulations, Saudi-based expats with monthly incomes of over SAR 30,000 are least likely to purchase a branded home.  Just under 50% of this group is ‘likely’ to purchase a branded residential home. 

36% of all survey respondents are keen to purchase a branded home within the next two to five years, with a further 28% interested in obtaining a branded residence within the next one to two years. Notably, just 15% of those surveyed are keen to make a branded residential acquisition this year. 

Mohamad Itani, Partner –  Partner, Project Sales & Marketing, KSA explained: “The apparent hesitation among Saudi nationals and Saudi-based expats to purchase a branded home in 2025 could be linked to a limited range of branded residential developments and/or perhaps high pricing – branded residences often command a significant price premium and in Riyadh some branded residences are being sold for prices in excess of SAR 65,000 per square metre, which is well above the non-branded market-wide average of around SAR 5,500 per square metre. 

Even for the highest earners, the desire appears to be relatively low, with just 39% of Saudi nationals earning in excess of SAR 80,000 per month keen to purchase a branded home this year”. 

NON-HOSPITALITY BRANDED RESIDENCES 

Knight Frank said branded residences are typically a result of collaborations between renowned brands (hospitality, or non-hospitality) and developers, pooling expertise in design and operations to craft exceptional properties, intertwined with a luxury lifestyle. Developers gain the rights to market and sell properties bearing the brand’s typically prestigious trademark, with the brand often assuming oversight and service responsibilities to uphold exemplary standards. This partnership allows numerous advantages for owners, including the assurance of service and access to an unparalleled array of facilities. 

According to Knight Frank, there are two types of branded residences: 

1. Hospitality-linked branded residence: These are residential developments that are connected to a hotel (usually a luxury hotel brand). Residents, through the virtue of owning a property in the development gain access to all the hotel’s facilities and amenities: the pool, gym, spa, room service, housekeeping, etc.  
2. Non-hospitality-linked branded residence: These are usually fashion or automotive-linked brands. These non-hotel-linked brands also often provide access to amenities and some also offer hospitality partnerships with the same positioning as the brand. They also usually include tailor-made services and member-only benefits. Non-hospitality brands are also usually more experimental with design and architecture, whereas hospitality brands follow the established look and feel of a hotel, with the former therefore very often seen to be more exclusive. 

Itani said: “Curiously, 55% of our respondents say they would prefer to own a branded home in a non-hospitality-linked development. This preference intensifies with income, rising to 76% among Saudi nationals earning between SAR 60,000 and 70,000 per month. The lack of a wide range of true branded residential developments and indeed hospitality-linked branded residential options in the Kingdom may be the key driver behind this”. 

FAMILY FIRST 

According to Knight Frank, both Saudi nationals and Saudi-based expats are keen, first and foremost, to buy a branded home for personal reasons, with 39% keen on using the acquisition as a main residence. This figure rises to 51% among Saudi nationals earning between SAR 60,000 and 70,000 per month. A further 31% aspire to buy a branded home for their children or extended family. Those especially keen on accommodating their children and extended family in branded homes are Saudi nationals whose monthly income ranges from SAR 70,000 to 80,000 (48%). 

Just under a fifth (19%) would look to make the purchase purely for investment reasons. 

Itani said: “In Riyadh’s Diriyah Gate, branded residential properties are currently trading for between eight and ten times the value of unbranded homes in the city, highlighting both the price delta for branded homes, but also the premium buyers are willing to pay to secure branded residential properties in desirable neighbourhoods”. 

BOOSTING DEMAND  

Knight Frank notes that while two-thirds of Saudi nationals and Saudi-based expats are keen to purchase a branded residential property, there are ways in which this demand can be further bolstered. 

The high cost associated with purchasing a branded home may be a barrier for many Saudi households, believes Knight Frank, particularly when you consider that the average monthly income of Saudi nationals in Riyadh stands at SAR 25,995, while in Jeddah the figure is lower still at SAR 15,577. 

The main factor that would make a branded home purchase more attractive to potential buyers would be the availability of ‘financing plans offered by local banks’ (39%). For expats, this rises to 47% and likely in large part stems from the complexities around securing home financing, especially for those looking for income multipliers in excess of 8-10 times. 

Durrani said: “The branded residential market in the Kingdom is still in its nascency, with just 1,775 existing branded residential units nationwide, with a further 2,500 units due by 2028. It is not surprising that the lack of branded property types and sizes has been cited as the second most important factor by potential buyers that needs to be addressed to make the sector more attractive. Over half of those earning between SAR 60,000 and 70,000 per month cited this as their most important consideration, hinting at an opportunity for developers to deepen this segment of the market further”. 

Linked to this is the limited number of branded residential operators in the Kingdom at present. 33% of Knight Frank’s survey respondents – both Saudi nationals and Saudi-based expats – claim the shortage of brands operating branded residential developments is another area they would like to see addressed. Alongside the greater availability of financing from local banks (44%), this ranked jointly as the most important area of concern for Saudi nationals earning between SAR 50,000 and 60,000 per month. 

Itani concluded: “More brands are lining up and eyeing opportunities across the Kingdom, which will no doubt help to satisfy the growing appetite for branded homes. The key for developers will be to offer branded homes that are on par with what is available in global gateway cities not just in terms of product, but the accompanying services, experience and of course pricing, will be critical factors in determining success”.  

-ENDS 

EDITOR’S NOTES 

The Saudi Report 2025 is available here. 

Knight Frank’s biennial flagship report is based on a real estate market survey which has been conducted in partnership with YouGov. The survey was designed to elicit a deeper understanding of preferences and aspirations for residential real estate. 

The survey respondents included 937 Saudi national households from the cities of Riyadh, Jeddah and Dammam, alongside 100 Saudi-based expats. These individuals were questioned on their home purchase and living preferences, including a specific focus on branded residences, their views on off-plan properties, their plans for financing purchases, as well as the Kingdom’s planned giga projects and their desire to own a home in them.