What the wealthy think

Of the 73% who intend to buy a new home in the next 12 months, 70% of those with a net worth of over US$ 1 million are keen to purchase, rising to 76% amongst those with a net worth of between US$ 0.5-1 million.

When it comes to property preferences, HNWI in the Kingdom prefer villas (50%) to apartments (43%) for their next acquisition.

In terms of budgets for their next purchase, 24% will spend between US$ 0.8-1 million, while a further 25% will spend up to US$ 2 million. 26% plan to spend under US$ 0.6 million. 45% say this will be representative of their equity contribution, while 36% say this is the size of their total budget.

On the main intention to purchase, using the property for themselves, or their family, has been cited as the most popular reason, with over half of all respondents (55%) selecting this option. A ‘lifestyle investment’, for personal use, or short-term lease, is the second most popular reason (33%), followed by a pure investment yield play (25%).

Dubai is the most preferred location outside the Kingdom

Beyond Saudi Arabia, Dubai has emerged as the most preferred potential target city, with 65% naming the emirate as a place they would like to buy a home. 19% say they would potentially spend up to US$ 0.5 million, while a further 25% will commit up to US$ 1 million. 25% are ready to spend between US$ 1-3 million.

“Of all the Kingdom’s Giga projects, HNWI are most interested in buying a home in NEOM”

NEOM still the most popular GIGA project

Like the respondents of Survey 1, the majority of HNWI (60%) name NEOM as the Giga project they would most be interested in buying a home in, with 97% of this group saying they are likely to make a purchase in the world’s most sustainable, most innovative and most technologically advanced city.

The Red Sea Project (22%) follows in a distant second place, while AlUla (13%) is ranked third.

The strong preference to buy a home in NEOM is echoed by HNWI in Riyadh (61%), as well as Jeddah (58%). What’s more, 70% say they ‘know a lot’ about NEOM.

Overall, 42% say a Giga project purchase will be a second-home, while 27% say it will be for investment reasons, with 60% expecting rental yields of between 4-6%. A third of respondents expect residential price growth of more than 10% annually in any of the Giga projects.

NEED TO KNOW

• 96% of HNWI are likely to make a purchase in one of the Kingdom’s Giga Projects
• Having access to a gym and supermarket are rated as the two most popular amenities that would influence HNWI purchasing decisions.
• 84% of HNWI will pay a premium to live in a Giga project (82% for NEOM).
• 57% of those with a net worth of US$ 1million+ are in favour of purchasing villas.
• 58% of HNWIs list themselves as the primary decision makers in selecting the location for a property investment, with 31% stating it is a family decision.

Discover the full Saudi Arabia Residential Survey 2022